Discussion and Case Study of options strategy for your selected firm.

Discussion and Case Study of options strategy for your selected firm.

Weekly Discussions:

Produce an options strategy case study using your bank selected for the class. the name of the bank chosen is(1^st source corporation)

Title your post with Company Symbol and your name.

Participate in weekly classroom discussions including assigned discussions, assigned chapters, supplements, problems, articles, and any other topics related to the week’s course of study. The Original Posting is to be completed by Thursday Night. The Other Posting is to be completed by Sunday Night.

Assigned Discussions:

1. Examine Option Strategy –

Options Strategy: From the readings and/or other sources (e.g.,http://www.cboe.com, etc.) select an option investing or hedging strategy that you would like to explore. Then, find a current option(s) price quotation that you would use to implement the strategy that you selected. After designing the options strategy, you should:

(a) Explain the strategy and the option contract(s) that you selected to implement it, along with the current price quotation(s).

(b) Discuss your expectations including amount of profit/loss about how the transaction will perform from implementation to exit/expiration.

NOTE: If your company does not have an options chain, let me know and I will provide an alternative security.

2. Identify Useful Derivatives Website –

Identify a website (not previously identified) that deals with the valuation and use of options?

What valuable information is provided by this website?

Explain, with specific examples, how the website is useful to investors and analysts?

3. Most Important Things Learned –

What are the most important things you learned from the study of this week’s readings and assignments?

Online Textbook:

Damodaran, Aswath. Support website for “The Little Book of Valuation.” Available online at:

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/littlebook.htm

Available online at:

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/Inv3ed.htm

Chapter 5 Option Pricing Theory and Models

Chapter 29 The Option to Expand and Abandon: Valuation Implications

Articles and Supplements

Actions for Articles and Supplements

Mauboussin Podcast
https://www.bloomberg.com/news/articles/2017-02-21/odd-lots-how-poker-explains-the-battle-between-passive-investing-and-active-management

Adjusting Hedge Coverage Over Time
http://www.afponline.org/trends-topics/topics/articles/Details/key-tips-for-adjusting-hedge-coverage-over-time/

Treasury and Oil Price Effects

http://www.afponline.org/trends-topics/topics/articles/Details/with-oil-prices-climbing-treasurers-need-a-plan/