Pair Options Trading Pros

[...] There are a few benefits to trading pair options instead of pair trading stocks, but the main benefit is the leverage you receive from trading [...]

[...] Pair options which are also known as spread options are a derivative product that allows an investor to [...]

[...] Pair options trading has many of the same aspects of stock pair trading in that the concepts used to enter [...]

[...] of one instrument relative to another is the percent from the mean.  This tool will allow pair options traders to follow not only the spread and the ratio, but the average percent away from the [...]

[...] Spread Options or Options on a Spread. They sound the same, but the two ideas are different in terms of the [...]

[...] Pair options which are also known as spread options are a derivative product that allows an investor to speculate on the relative direction of [...]

[...] a day, week or month where the returns are binary in nature.  In essence, the product is a binary option on a spread of two financial instruments.  The payout of 85%, is available on a risk of 100% [...]

[...] a specific fixed amount for the amount invested as premium. The majority of the time, a binary option is priced at the current market and the investor will be able to receive a return on his [...]

[...] .  Spread options are usually quoted in currency per share or contract, but can also be a binary option which is an all or nothing option on the spread.  A trader could initiate the same type of [...]

[...] which is defined by the broker. The current payout profile of pair options is similar to a binary option in that the payout is fixed as a percentage of the amount speculated on the pair option. One [...]

[...] to a binary option in that the payout is fixed as a percentage of the amount speculated on the pair option. One of the best strategies for pair options is to use a mean reversion strategy on pairs of [...]

[...] if the market rises. Although they sound the same a spread option and an option on a spread or pair option are totally different instruments that generate risk in a completely different way. [...]

[...] A Pair option is an option in which an investor is speculating on the direction of the relative change in the [...]

[...] A market neutral strategy is one in which an investor seeks to profit from the change in the relative value of on [...]

[...] is the leverage you receive from trading options relative to stocks. Pair trading is a market neutral strategy, and the changes that a trader should expected in the spread are relatively minor. Pair [...]

[...] create market neutral positions by trading pairs of stocks that are highly correlated. A market neutral strategy such as pair trading is accomplished by purchasing one and simultaneously shorting [...]

[...] purely based on the short term movement of the underlying financial markets. In the case of binary pair options, the investors receives a fixed payout if the relative change in the pair moves above or [...]

[...] and shorting an overvalued stock. Ideally, the long position will increase in value, and the short position will decline in value. The evaluation process can be a fundamental strategy in which the [...]

[...] stocks creating a market neutral position. Additionally investors can simulate a long and short position by either purchasing vanilla calls on one stock and puts on another.  There has also been the [...]

[...] $500 dollars for both the long and the short side of the trade, for 50 shares of a long and a short position.  A ratio move from 1.0 (10/10) to 1.05 10.50/10, would earn an investor 50 cents on 50 [...]

[...] benefits if one asset performs better relative to another.  Traders can create market neutral positions by trading pairs of stocks that are highly correlated. A market neutral strategy [...]

[...] to capture the movement of one asset relative to another.  Traders can create market neutral positions by trading pairs of stocks that move in tandem with one another (have a high [...]