From the May 01, 2010 issue of Futures Magazine • Subscribe!
The first profit-and-loss (PNL) graph shows the covered call. The second PNL graph demonstrates the covered call when all the offsetting profits and losses between the stock and short call are canceled out. You will notice that the resulting position results in a synthetic short put.
Breaking new ground with neural nets
After reviewing neural nets’ past failures and charting a course for a more modern application of the technology in the previous installment, we bring into focus the fuzzy promises of the past and build the framework for using these tools in trading.
Using British pound options to play a dovish BoE
As the Bank of England (BoE) continues its efforts to push inflation back to its 2% target, the pound Sterling has fallen to near 31-month lows against the dollar. Use a put spread to define your risks vs. rewards.
S&P 500 marches higher in face of “Fedspeak”
Overall, the bull market frenzy is picking up and we still believe the E-mini S&P 500 will finish this year at 1690 or higher.
SEC charges Chicago father, son in cherry-picking scheme
The regulator says Charles J. Dushek and Charles S. Dushek mixed funds with clients and allocated winning trades to personal accounts.