Use "directionality" in a sentence
directionality example sentences
directionality
1. of appearance, the ‘nearness’ of appearance before object, and the directionality from object to
2. The directionality of this assumption is based on a reference point: Things should be better—for you
3. 2005), and determined the directionality of these
4. Why is this so? Because every option trader could, if they wanted to, hedge the directionality out of their option trade using the underlying stock
5. We’ve already mentioned how someone might trade the underlying stock against their option position in order to wring the directionality out of the combined position
6. For those trying to wring the directionality out of the trade and turn it into a volatility trade, this measure of the expected change in the price of the option given a $1
7. For those using options for directionality, this measure is the likelihood that the option will be in-the-money at expiration
8. Both uses mean it’s also the hedge ratio for someone who is trying to wring the directionality out of their position
9. 1 shows how to use the underlying stock to wring directionality out of an option trade
10. The fact that the delta is the hedge ratio necessary to wring the directionality out of a volatility-based trade means that as the price of the underlying stock moves, the hedge ratio changes, necessitating adjustments to the amount of underlying stock that is hedging the option position
11. Traders using options for directional trades don’t have much use for gamma since they’re not worried about adjusting their position to remove directionality
12. Instead, they want the directionality
13. For directional traders, gamma can tell them how quickly the directionality of their trade will change
14. If gamma is high, then the directionality of the trade will increase or decrease quickly
15. If gamma is low, then the directionality of the trade will change slowly
16. Again, with the front month in-the-money at expiration the directionality of profit after that expiration is contrary to our outlook for the market
17. Since a long calendar spread does best with the underlying stock at the strike price of the options at the expiration of the front month, a long calendar has significant directionality
18. As the strike price of the calendar spread increases the directionality of the spread increases; the lower breakeven point rises, the upper breakeven point rises, and the point of maximum profit rises—this point of maximum profit is also the strike price of the calendar spread
19. You could strike a straddle far from at-the-money but that straddle has substantial directionality and since one of the constituent options will be deeply in-the-money, the bid/ask spread will create problems for the execution of any deeply in-the-money straddle
20. If you can correlate your trade as much as possible with the general market's directionality and momentum, then you will add significant percentage points to the probability that your trade will turn out a winner
21. Stoxx's unique method of assessing market psychology, sector strength, and general market directionality
22. The factors include realized and implied volatilities, swap–Treasury spread changes (a liquidity proxy), prepayment surprises, and spread directionality
23. However, even though variance swaps are designed to be mathematically delta neutral, they exhibit empirical market directionality (a mild positive equity market beta) because falling equity markets tend to coincide with rising volatility
24. When trading a long–short position, pairwise volatility scaling (weighting long and short legs by their empirical volatilities or betas) reduces and (if risk estimates are accurate) potentially eliminates the position’s market directionality
