Market Neutral Phase Optimization Through The Use Of Option Strategies

摘要

In past decades, the capital market has developed continuously with the rise of new financial products, new mechanisms and new segments. The past 30 years have witnessed a growing derivative market, a very vigorous in the capital market. Trading derivatives has become an effective way of risk management. In tandem with this explosion have launched increasingly more concerns about potential dangers of derivatives - a financial crisis in one market can have a domino effect causing a global catastrophe. But what are derivatives? Threaten the businesses and the economy or increase welfare? Derivatives are the most avant garde instruments that may be found in the portofolio of an investitor. By nature, these contracts come in more specialized needs that arise in the current global financial context. Derivatives allow firms and individuals to protect against risks and to accept risks effectively. This paper presents a study on return optimization during market neutral phases through the use of option strategies. It contains a number of concrete recommendations on the exploitation of neutral market phases. Study results are instructive and will serve as a possible approach for further investigations.