Topic 9. Trading options contracts
- Analyze how an important event or unexpected news affected the prices of put and call options on the Moscow Interbank Currency Exchange index. Make the calculations that could lead to the conclusion about the advisability of buying puts and calls at the same time the day before this important event or the release of this news.
- Wait for a period of reduced volatility in the Russian stock market and enter into a virtual deal to sell options (put and/or call). Analyze how the price of options decreases over time. Calculate how much you could earn on this trade if volatility remained low until the option expiration date.
- Make two real transactions at the same time (for minimum amounts) – buy a call option on the US dollar and sell a futures contract on the same underlying asset. The strike price of the option should be as close as possible to the market price of the futures, the expiration date should be no less than two weeks from the date of the transaction.
Analyze the dynamics of the price of futures and options. Give answers to the following questions:
How does the price of an option change depending on the change in the price of the futures immediately after you entered the market, after a week, after two weeks?
• Are there periods in the market when it is possible to close both trades in profit?
• What is the financial result of the transaction by the expiration date of the option. How can you explain this result?