“The market right now is not directionless, it is clearly zooming in one direction, there is clearly a lot of optimism, we are seeing a very broad exuberance, especially in the small and midcap space. Right since April 1, this year, we have seen a consistent rally in the entire broader market space which has significantly outperformed.”
Form 424B2 UBS AG streetinsider.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from streetinsider.com Daily Mail and Mail on Sunday newspapers.
Form 424B2 UBS AG streetinsider.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from streetinsider.com Daily Mail and Mail on Sunday newspapers.
"In high premium situations, you can use the concept of spreads and sell an out-of-the-money (OTM) option for both the call and put to offset some premium. However, this comes with a capped profit. For instance, in the previous scenario, you can sell a 19450 put for 24.5 and a 19850 call for 57.5, reducing your premium by 82 points. This is known as the Iron Fly strategy. The payoff graph for Iron Fly looks like this:"