When a trader has less long positions then short it is called Frontspread. It has huge risk where earning the profit has limited scope. Normally professional investors, who expect the underlying to make upward movements make use of this option strategy.
Frontspread is even known by the name “Ratio Vertical Spread”.
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Tags: call option, Frontspread, Ratio […]
Entries from December 2008
It’s All About the Frontspread
September 25th, 2008 · No Comments
Tags: Options Trading Strategies
Financial Engineering
September 24th, 2008 · No Comments
Financial Engineering
When an existing design or financial product is repackaged into a new form by the use of new concepts and tools, it is called financial engineering
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Tags: Financial Engineering
Tags: Technical Analysis
How Does Binomial Tree Applied in Options Market?
September 23rd, 2008 · 1 Comment
The possible values that an option may possibly take at various time periods shown in a graphical presentation is called Binomial tree. The option value is based on the underlying asset and the option value at any point of time is dependent on the chance of the rise or fall in the rates of the […]
Tags: Technical Analysis
