Question
Here's a publicly traded stock that has not been chosen by other students (AAPS, Digital Turbine INC): perform the following option strategy on that stock.
Here's a publicly traded stock that has not been chosen by other students (AAPS, Digital Turbine INC): perform the following option strategy on that stock.
Strategy 1: Long Straddle,Choose one publicly traded company that has not been chosen by any other student and buy both the call and put options (10 contracts of puts and 10 contracts of calls; 10 contracts is equivalent of 1000 shares) on that stock. The same strike price (Strike price must be closest to current market price of the stock) and the same expiration date = Any month between November 20 through January 21. Post the price of each option as soon as you buy both the put and call options on the DB.Also, post your total expenditures for strategy 1.
Strategy 2:Synthetic long stock, choose the same company above and create an synthetic long stock using options on that stock.Explain your purchase or sale and estimate the total cost of this strategy.
Strategy 3:Synthetic short stock, choose the same company above and create an synthetic short stock using options on that stock. Explain your purchase or sale and estimate the total cost of this strategy.
Strategy 4:Long Future Contract, choose a future contract that has not been chosen any other student, buy one contract, expiration Any month between November 20 through March 21. As soon as you bought it, post the purchasing price and the value of that contract. If all futures that trade in the Stocktrak have been chosen, then buy any contract, however, the expiration should be different than the previously chosen contract by another student.
Recommendation:Please watch "How to trade options and futures contracts" in the Stock-Trak software. If you trade your future contract when the market is open, your order will be filled quickly. However, if you put your order when the market is closed, it will be filled the next day at the open of the market.
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