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Options Strategies on Microsoft and Facebook Stocks (B)
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Abstract
The case study describes how the board of Newway Bright Stock Fund, a first generation Fund Management firm, decided to use Options investment strategies to overcome an uncertain environment in the US stock market. The case study provides material to construct, distinguish, and assess the payoff profiles of various Options strategies in a volatile market and also helps analyze the position of the writer of the Options. |
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Issues
The case is structured to achieve the following teaching objectives:
- Construct various Options strategies in a volatile market.
- Calculate the pay-off of using various Options strategies using Microsoft and Facebook data on NYSE
- Learn when to use the Options strategies
| Contents |
| INTRODUCTION |
| EXHIBIT |
Keywords
Long Straddle, Short Straddle, Long Strangle, Short Strangle, Long Strip, Short Strip, Long Strap, Short Strap, Microsoft, Facebook, In-The-Money, Out-of-The-Money, Strike Prices, Options strategies, Options.
