USING OPTIONS
1) Hedging – Have portfolio buy puts.
2) Speculation
Bullish – Buy calls or Sell puts
Bearish – Buy puts or Sell calls
3) Hedged speculation
Bullish spreads
Bearish spreads
Anticipate volatility – Buy Straddles or Strangles
Anticipate Stability – Sell Straddles or Strangles.
4) Arbitraging – Potential mispricing of options.
