OptionPositions

OptionPositions - Options Positions By Dr. Fernando Diz The...

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Options Positions By Dr. Fernando Diz
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The Analysis of Options’ Positions Position value: is the sum of the values of  all the securities in a position, each  weighted by the number bought or sold. Example:  V P  = n 1 V 1  + n 2 V 2 + …. .+ n n V n
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Analysis of Options’ Positions n is the number of calls, puts, shares, etc. By convention:  n<0 means that the security is short (or  written in the case of options). n>0 means that the security is held long or  purchased.
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Analysis of Options’ Positions Delta of a position: ∆ ≡ ∂ V/ S Suppose that we have a portfolio that is  composed of one share of stock long, and  one written call. How do you write the value of this  position?
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Position Value = 1 S - 1C where n S  = 1 and n C = -1 What is the delta of this position?  
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OptionPositions - Options Positions By Dr. Fernando Diz The...

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