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Pick a stock and design an appropriate option trading strategy given your view of the market. Please make sure that you provide the following analysis:
Pick a stock and design an appropriate option trading strategy given your view of the market. Please make sure that you provide the following analysis:
a) Fundamental and technical analysis on the stock and its volatility with your supporting evidences such as graphs.
b) The nature and rationale for the option strategy, including but not limited to the choice of time horizon, strike and moneyness.
c) The risk-return analysis i.e. max reward, max risk, break-even price, payoff/P&L diagrams and degree of bullishness/bearishness.
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