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Profiting with Synthetic Annuities: Option Strategies to Increase Yield and Control Portfolio Risk
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Profiting with Synthetic Annuities: Option Strategies to Increase Yield and Control Portfolio Risk

by Michael Lovelady
June 2012
Intermediate to advanced
272 pages
4h 37m
English
Pearson
Content preview from Profiting with Synthetic Annuities: Option Strategies to Increase Yield and Control Portfolio Risk

7. Managing a Generalized SynA

Managing a generalized SynA often requires more attention and more frequent adjustments. The management rules are similar to those of the CSynA, except that, when leveraging theta, using spreads instead of naked options is usually a good idea. This chapter also includes some comments on combining risk exposures to stabilize certain hedged SynA’s.

Cost Basis Adjustments and Financing Insurance

Protecting cost basis is again the most important aspect of SynA management. If you are trading Level 3 options and above, you probably have your own views about risk management. Instead of talking about rules beyond that related to cost basis, I present guidelines that have been useful to me. I also walk through some scenarios ...

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Publisher Resources

ISBN: 9780132929158Purchase book