The Picture Of Profit - Equity Vs. Index Options
Equity Vs. Index Options
The concept of equity and index options performing differently may seem obvious to most options professionals. However, there is a great deal of confusion amongst novice options traders regarding the performance of equity options relative to index options.
Despite many efforts to the contrary, the belief persists that equity and index options are completely separate animals. These animals perform differently under identical conditions. This misguided belief has been the root of a great deal of While the structure and contract specifications of the two products may differ, at the end of the day, a call is still a call...
Long Index Call
Chart Note - B.E.P. = Break Even Point
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Long Equity Call
Chart Note - B.E.P. = Break Even Point
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About Mark S. Longo
Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market.Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.
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