Comments on: A trading strategy is an option http://www.puppetmastertrading.com/blog/2007/10/10/a-trading-strategy-is-an-option/ algorithmic trading experiences Fri, 20 Jan 2012 02:03:24 -0800 hourly 1 http://wordpress.org/?v=3.1.3 By: tito http://www.puppetmastertrading.com/blog/2007/10/10/a-trading-strategy-is-an-option/comment-page-1/#comment-23537 tito Fri, 20 Jan 2012 02:03:24 +0000 http://www.puppetmastertrading.com/blog-test/?p=27#comment-23537 I certainly won't come after you if you do... I certainly won’t come after you if you do…

]]> By: v http://www.puppetmastertrading.com/blog/2007/10/10/a-trading-strategy-is-an-option/comment-page-1/#comment-23535 v Thu, 19 Jan 2012 07:50:03 +0000 http://www.puppetmastertrading.com/blog-test/?p=27#comment-23535 may i use this diagram in my coursework please may i use this diagram in my coursework please

]]> By: Corporate Serf http://www.puppetmastertrading.com/blog/2007/10/10/a-trading-strategy-is-an-option/comment-page-1/#comment-11917 Corporate Serf Thu, 23 Sep 2010 20:06:18 +0000 http://www.puppetmastertrading.com/blog-test/?p=27#comment-11917 actually the analogy is closer with some more exotic options, ratchets, for example. actually the analogy is closer with some more exotic options, ratchets, for example.

]]> By: tito http://www.puppetmastertrading.com/blog/2007/10/10/a-trading-strategy-is-an-option/comment-page-1/#comment-5709 tito Tue, 15 Sep 2009 11:07:11 +0000 http://www.puppetmastertrading.com/blog-test/?p=27#comment-5709 None of the strategies that I've described thus far has exactly the same payout/profit function as an option, so not with the examples given. But one could easily write some that do and combine them as you suggest. My broader point with this post is that strategies have potentially non-trivial profit functions which can effectively be engineered by their developers just as the developers of structured products can do. But structured products are relatively arcane, so options strategies or portfolios of options are another way of illustrating the same point that's probably closer to home for most. None of the strategies that I’ve described thus far has exactly the same payout/profit function as an option, so not with the examples given. But one could easily write some that do and combine them as you suggest.

My broader point with this post is that strategies have potentially non-trivial profit functions which can effectively be engineered by their developers just as the developers of structured products can do. But structured products are relatively arcane, so options strategies or portfolios of options are another way of illustrating the same point that’s probably closer to home for most.

]]> By: jbr http://www.puppetmastertrading.com/blog/2007/10/10/a-trading-strategy-is-an-option/comment-page-1/#comment-5697 jbr Mon, 14 Sep 2009 19:01:11 +0000 http://www.puppetmastertrading.com/blog-test/?p=27#comment-5697 So, could we use a trend following strat with a mean reverting strat as a put/call spread? what does the option strike translate to in a strategy? So, could we use a trend following strat with a mean reverting strat as a put/call spread? what does the option strike translate to in a strategy?

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