What Is a Bull Call Spread?

Call options are also called call options, call options, call options, call options, buy-back options, or "knock-in", which means that the purchaser of an option has a certain amount to buy at the strike price during the validity period of the option contract Subject matter rights. A call option is a contract that gives the contract holder (ie, the buyer) the right to purchase a specific quantity of a specific transaction object from an opponent at an agreed price.

Call option

Option belongs to

A call option refers to the right of the holder of the agreement to purchase shares at a prescribed price and quantity during the validity period specified in the agreement.

The BS model is the pricing formula for call options, namely:

C = S · N (D1) -L · exp (-rT) · N (D2)

Call option

On January 1, the subject matter was

Bullish

Call option

1.Maturity value

Call option exercise

1, so that buyers can enjoy the right to purchase specific transaction objects at an agreed price in the future, and improve the overall efficiency of resource allocation. Establish and improve self-restraint and self-development management mechanisms.

2. Exploring investment channels for investors, expanding the range of investment options, and adapting to the diversity of investors

At present, China has listed option products. The relevant exchanges and option products are:

1. On February 09, 2015, the Shanghai Stock Exchange officially listed on the Shanghai Stock Exchange 50ETF Options ^[1]

If a lot of zero-yielding cash in your asset portfolio makes you crazy, then you might want to see what Buffett thinks.

Warren Buffett's Berkshire Hathaway is holding $ 41 billion in cash, the most in a year. This may be because the dollar is a safe asset, but this is not the whole reason. Alice Schroeder says that, like everything about Buffett, this strategy is far more complicated than it seems.

Alice Schroeder is definitely qualified to say that, she spent more than 2,000 hours with Buffett and wrote a biography for him: "Snowball: Buffett and his Fortune Life". She knew him better than everyone except the Buffett family.

Schroeder said that for Buffett, cash is not a near-zero return asset, but a call option that can be priced. When he thinks asset returns are low, he prefers to put money in banks with extremely low interest rates rather than use it to buy assets.

She said: "Warren Buffett views cash differently than the average investor. Cash is selective, which is one of the most important things I learned from him. He thinks cash is a call option that never expires. Buy any asset without being subject to the exercise price. "

This is a very basic insight. Because once investors see cash as an option, they have a chance to make a big bargain. Instead of being attracted by short-term benefits, you end up with nothing.

An investor's asset portfolio is not a simple dualism of either holding cash or buying bonds and stocks. The key is to hold a large percentage of cash in order to purchase assets when opportunities arise, while also considering the opportunity cost of holding cash in the previous period.

"There is a view that Buffett just likes cash and likes to see cash pile up, but in fact, this selectivity is based on complex mathematical calculations. Even though Buffett often just calculates in his mind."

Schroeder said many of Buffett's calculations were done on the couch in his Omaha office, and he just sat there reading and thinking. Schroeder spent hours researching Buffett's drafts. She found that although Buffett always likes to say some short famous sayings, in fact, the investment he makes is very complicated.

For those investors who treat cash as a call option like Buffett and are struggling to find undervalued assets, the "call cost" they pay will be the opportunity cost, that is, the return on investing in other assets and holding cash for almost zero returns Gap.

Schroeder said: "Generally, he likes simplifying concepts, like saying, 'I like to hold a lot of cash because I can use it at any time.'"

Schroeder said she hopes more investors will learn this. To many investors, holding cash is, in a sense, an escape. When they see that their fund managers hold a lot of cash, they feel that their funds are not showing the value they deserve, which is wrong.

"If investors realize that their fund manager is an expert who understands cash as a call option and walks in and out of the market at random, they may feel that their investment is more value for money."