Hedging Strategies
Brief overview
1) Controled risk trading is possible due to the availability of FXspot options previously only available to banks and institutional investors.
2) It is possible to develop trades with very little risk and unlimited profit potential.
3) The Black & Scholes option pricing model (originally concieved for the stock market) underestimates the probability of strong directional spot movements.
4) Option prices are skewed toward the markets anticipation of directional movement.
5) Risk Reversal compares the implied volatility and strike prices of the 25 delta calls and puts. This may be a good indicator of the markets anticipation of probable direction . However, contrarian theory states that the market is more likely to move against the majority.
6) Due to the volatile nature of the forex market, the pricing model falls short on predicting the range of movement.
7) Trading implied volatility in the currency options market can be as profitable as trading price action.
8) Delta neutral trading combined with volatility assesment and our fundamental / technical market analysis can provide us a trading advantage.
CONCLUSION: Various strategies of long / short spot positions combined with long / short option positions will yield low risk trades with high profit potential.
Company Details
- Employees
- 3
- Founded
- 2009
- Phone
- 12146613106
- Industry
- Financial Services
- NAICS
-
Finance and InsuranceMonetary Authorities-Central Bank
- Website
- fxoptionguy.com
- Keywords
- unique investment strategies.
Lakeside Capital Questions
Lakeside Capital's helpline number is 12146613106
Lakeside Capital's website is fxoptionguy.com
Lakeside Capital's LinkedIn profile is https://www.linkedin.com/company/lakeside-capital
Lakeside Capital has
3 employees.
View email and phone details for 3
employees at Lakeside Capital.
Lakeside Capital's industry is
Financial Services
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Lakeside Capital's categories are Financial Services
Lakeside Capital's founding year is 2009
