Re:Offline Algorithms in Low-Frequency Trading
by omarhaneef on Saturday January 30, 2021 @10:10AM
(#25969661)
I would look up two terms:
Covered calls
Naked puts
If you want to go heavy duty into it I recommend the Hull book (options, futures and other derivatives) but for your purposes the investopedia articles are enough.
Basically naked puts means you’re selling downside insurance so if the stock crashes you eat the loss. Covered calls mean you sell upside risk but have the stock so if it goes up you make a little.
Re:Offline Algorithms in Low-Frequency Trading
by beezle on Saturday January 30, 2021 @01:18PM
(#25971425)
Hull is a great book and is not too heavy on the math. However, for someone just getting their feet wet, Options as a Strategic Investment by MacMillan is a classic.
Covered calls
Naked puts
If you want to go heavy duty into it I recommend the Hull book (options, futures and other derivatives) but for your purposes the investopedia articles are enough.
Basically naked puts means you’re selling downside insurance so if the stock crashes you eat the loss. Covered calls mean you sell upside risk but have the stock so if it goes up you make a little.