Advanced option trade management

摘要

In the final part of our series on option trade management, we will cover additional methods for hedging position risk, including using the underlying contract and we will discuss simple techniques to measure volatility. In the previous two parts of this series on managing position risk in options, we have presented some fairly simple, but effective, techniques for hedging. These included simply exiting the position, buying protection using a spread trade and increasing exposure by selling expen-sive near-the-money options.