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    Use "otm" in a sentence

    otm example sentences

    otm


    1. Some OTM calls he is short now have a 100 delta between now and the open


    2. With the SPX over 950, a bevy of far OTM puts traded in major size


    3. The number at the bottom of the table, $145,515,195, is roughly the money spent on OTM puts in SPX that morning


    4. An iron condor is a sale (purchase) of an OTM call spread combined with a sale (purchase) of an OTM put spread


    5. The VIX “opened” at 37, thanks to some very wide and very high quotes in OTM puts on the SPX (we describe the VIX calculation procedure in Chapter 3)


    6. If the put expires out-of-the-money (OTM), meaning that XYZ was above $90 at the time of expiration, then the put seller keeps the premium collected


    7. One of the worst trades in the world is to buy VIX OTM calls in the middle of a crash


    8. Movements in ATM options affect the price of OTM puts, OTM calls, and the entire term structure


    9. There are several types of skew; however, within equity and equity index options, options usually have an “investment skew,” where OTM puts have a higher implied volatility than ATM options, and OTM calls have a lower implied volatility than ATM options


    10. You need to be aware of the way OTM options price in terms of volatility

    11. On far OTM spreads the theta decay is more linear, so when you’re doing longer trades, as in an iron condor, starting a trade 30 to 60 days from expiration is optimal


    12. The transition from low to high can ramp up the value of OTM puts


    13. It is also likely that any insurance bought would be ineffective, as the far OTM puts will already have a large portion of risk premium built into their price


    14. Sell one at- or near-the-money put or call, then buy two OTM calls or puts against, and the net premium paid for the two should be less than the value of the one sold


    15. What Happens to the Gamma of ITM or OTM Options When IV Increases?


    16. However, the crazy thing with OTM options rears its head if we increase IV significantly, in this case 15%


    17. OTM (out-of-the-money), 10, 12, 39, 84


    18. OTM (out-of-the-money) option, 10, 12, 39, 84


    19. See OTM option


    20. Out-of-the-money (OTM): A call option is out-of-the-money if the strike price is greater than the market price of the underlying security

    21. Volatility effect on in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM):


    22. Description Long OTM covered call, short OTM put, long cash to buy stock at the strike price


    23. Width of ITM spread − Cost of ITM spread + Premium received for OTM spread


    24. An option can be in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM)


    25. Traders usually buy in-the-money (ITM) or at-the-money (ATM) calls, where the strike price is lower than the cash price of the stock, or just out-of-the-money (OTM) calls, where for example the stock price is $885 but the strike is 890, and use the technical levels in the stock price to stop the option trade or to take profits


    26. The 890 strike OTM calls were offered at $8


    27. Which to choose, ITM or OTM, is a big bone of contention with traders


    28. Long a put spread or call spread Buy ATM call (or put) and sell OTM call (or put) with same expiry


    29. Short a put spread or call spread Sell ATM call (or put) and buy OTM call (or put) with same expiry


    30. Long a ratio put or call spread Buy ATM put (or call) and two or more OTM puts (or calls)

    31. Long a Diagonal Buy ATM put with near expiry and sell OTM put with distant expiry


    32. Options are classified as being in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM)


    33. OTM = the call strike price is greater than the underlying price; the put strike price is less than the underlying price


    34. Trading far OTM options have a lower winning percentage but a higher-percentage return if the trade is successful (lower premiums paid but a bigger move in the stock is needed to make a profit)


    35. Losses can be held a bit longer since delta works in your favor (delta slows down as the option moves further OTM)


    36. Strategy implementation: A call option is bought at the nearest ITM strike price, and another call option is sold or written at the nearest OTM strike price; this produces a debit to the account


    37. A put option is bought at the nearest ITM strike price, and another put option is sold or written at the nearest OTM strike price; this produces a credit to the account


    38. Strategy implementation: The investor buys the underlying stock (hence, covered call as opposed to naked call where one does not own the stock) and sells or writes a call (1 per 100 shares owned) against the stock at the nearest OTM strike price


    39. Strategy implementation: A call option is sold or written at the nearest ITM strike price, and another call option is bought at the nearest OTM strike price; this produces a net credit to the account


    40. A put option is sold or written at the nearest ITM strike price, and another put option is bought at the nearest OTM strike price; this produces a net debit to the account

    41. OTM Out of The Money (option)


    42. For out-of-the-money (OTM) options written, the equity beta component is higher (more upside exposure is kept) and the volatility component is lower


    43. There is some evidence that the strategy is more profitable if OTM options are used, perhaps due to a better capture of the equity premium and more expensive options


    44. CCW return volatility is mainly driven by equity returns (directional exposure), especially if done with OTM options


    45. Ni (2006) estimates that OTM calls on individual equity options have had large negative average returns over 1996–2005: around—30% per month based on mid-market (average of bid and ask) prices


    46. ) Was market pricing due to irrational memory or rational learning? Benzoni–Collin-Dufresne–Goldstein (2010) present a model that uses jumps and learning to explain the persistent richness of OTM index puts after the 1987 crash


    47. (iii) The richness of OTM calls on single stocks looks like a story of lottery ticket preferences


    48. An equity premium explanation has the wrong sign (OTM calls have high equity betas that should imply high ex ante equity premia) and a peso problem explanation can be countered by the fact that the equity market trend was benign during the study’s sample decade and the fact that there were more upside surprises than during previous decades


    49. The findings are consistent with skew-seeking investors overpricing OTM calls that resemble lottery tickets


    50. • End-users are most active in single-stock OTM calls and index OTM puts



































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