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Derivatives strategies with technical indicators

Derivatives Strategies With Technical Indicators

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Derivatives strategies with technical indicators

Bullish vertical spread using calls

A bull spread is created when the underlying view on the market is positive but trader would also like to reduce cost on his position.

Bearish vertical spread using puts

Strangle

• An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.

• This option strategy is profitable only if there are large movements in the price of the underlying asset.

Long strangle

When there is a large movement of marketprice in either direction.