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Market Measures - November 11, 2024 - Why Neutral Strategies May Dominate
Manage episode 449606068 series 68544
Tony Battista, Nick Battista, and Gad Nishimwe explore the benefits of neutral strategies, emphasizing their higher returns and lower risk compared to directional trades. Analyzing data from 2005, they find straddles and strangles outperform individual puts or calls. Neutral strategies like strangles, requiring no extra buying power, offer valuable risk management, showcasing their potential superiority in various market conditions, especially when controlled with a mechanical approach and volatility management.
1236 odcinków
Manage episode 449606068 series 68544
Tony Battista, Nick Battista, and Gad Nishimwe explore the benefits of neutral strategies, emphasizing their higher returns and lower risk compared to directional trades. Analyzing data from 2005, they find straddles and strangles outperform individual puts or calls. Neutral strategies like strangles, requiring no extra buying power, offer valuable risk management, showcasing their potential superiority in various market conditions, especially when controlled with a mechanical approach and volatility management.
1236 odcinków
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