Volume: 2010

Issue: 02

Author(s):

Vincent Soltés, Omer Faraj S. Amaitiek

Article title:

The Short Put Ladder Strategy and its Application in Trading and Hedging

Journal:

Theory, Methodology, Practice

Pages:

77-85

Keywords:

JEL-code:

G11

DOI:

Abstract:

The first aim of this paper is to propose another way of an option strategy formation known as
Short Put Ladder, describe the functions of profit in their analytical forms and propose an optimal
algorithm for the use of this strategy in trading. The other goal is to propose the application of the
Short Put Ladder Strategy in hedging against a price drop of the underlying asset and compare the
result with the results of hedging using the known Long Combo option strategy.

Bibtex entry

{
@ARTICLE { TMP201002-77,
AUTHOR = {Vincent Soltés and Omer Faraj S. Amaitiek},
TITLE = {The Short Put Ladder Strategy and its Application in Trading and Hedging}
JOURNAL = {Theory, Methodology, Practice},
VOLUME = {6},
NUMBER = {02},
PAGES = {77-85},
YEAR = {2010}
}

License:

CC-BY
Download file: Fulltext