Discussion
and Case Study of options strategy for your selected firm.
Weekly Discussions:
Produce an options strategy case study using your
bank selected for the class. the name of the bank chosen is(1st
source corporation)
Title your post with Company Symbol and your name.
Participate in weekly classroom discussions
including assigned discussions, assigned chapters, supplements, problems,
articles, and any other topics related to the week’s course of study. The
Original Posting is to be completed by Thursday Night. The Other Posting is to
be completed by Sunday Night.
Assigned Discussions:
1. Examine Option Strategy –
Options
Strategy: From the readings and/or other sources (e.g.,http://www.cboe.com,
etc.) select an option investing or hedging strategy that you would like to
explore. Then, find a current option(s) price quotation that you would use to
implement the strategy that you selected. After designing the options strategy,
you should:
(a) Explain the strategy and the option contract(s)
that you selected to implement it, along with the current price quotation(s).
(b) Discuss your expectations including amount of
profit/loss about how the transaction will perform from implementation to
exit/expiration.
NOTE: If your company does not have an options
chain, let me know and I will provide an alternative security.
2. Identify Useful Derivatives Website –
Identify a website (not previously identified) that
deals with the valuation and use of options?
What valuable information is provided by this
website?
Explain, with specific examples, how the website is
useful to investors and analysts?
3. Most Important Things Learned –
What are the most important things you learned from
the study of this week’s readings and assignments?
Online
Textbook:
Damodaran, Aswath. Support website for “The
Little Book of Valuation.” Available online at:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/littlebook.htm
Available online at:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/Inv3ed.htm
Chapter 5 Option Pricing Theory and
Models
Chapter 29 The Option to Expand and
Abandon: Valuation Implications
Articles and Supplements
Actions for Articles and Supplements
Mauboussin
Podcast
https://www.bloomberg.com/news/articles/2017-02-21/odd-lots-how-poker-explains-the-battle-between-passive-investing-and-active-management
Adjusting
Hedge Coverage Over Time
http://www.afponline.org/trends-topics/topics/articles/Details/key-tips-for-adjusting-hedge-coverage-over-time/
Treasury and Oil Price Effects
http://www.afponline.org/trends-topics/topics/articles/Details/with-oil-prices-climbing-treasurers-need-a-plan/
