Exponent options-overlay-2014-08-13

613-747-2458 ex-ponent.com [email protected]

Exponent Investment Management

Benoît Poliquin, CFP, CFA –

President and Lead Portfolio Manager

Option Strategies For Your Portfolio


Options Basics:


Option Types:


Factors Affecting Option Prices

For an Increase in the: The Call Price The Put Price

Stock Price Rises Falls

Exercise Price Falls Rises

Time until Expiration Rises Rises or Falls

Interest Rate Rises Falls

Stock Risk Rises Rises

Source: FUTURES, OPTIONS &

SWAPS, Robert W. Kolb


Step One: Quality


Step 2: Research


Step 3: Option Research


Example #1: FAST (ignoring transaction costs)


Ramifications


FAST conclusion- Securitized Puts


Example #2: CCO (ignoring transaction costs)


Ramifications


CCO Conclusion-Securitized Puts


Putting it all together


Net Result = Higher Cash Flow


Quality Remains


Contact us at 613-747-2458

or visit www.ex-ponent.com

Want to learn more?

Exponent options-overlay-2014-08-13

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