Using Equity FLEX Options
The Many Possibilities.
An expansion of opportunities -- that's one of the prime benefits of FLEX Options -- to provide new ways to fine tune option strategies and more precisely target trading objectives. FLEX Options provide new power and versatility to virtually every option strategy.
Here's a brief look at some of the many possibilities:
- Large stockholders can effectively close their positions with lower market impact by selling customized calls that have been created as part of an exit strategy.
- Institutions can amplify protection for their stock holdings by buying customized puts, limiting downside risk and taking advantage of expanded position limits.
- Investors can establish a synthetic short stock position by simultaneously buying customized puts and selling customized calls, avoiding early stock recalls and dividend payment concerns.
- Investors can establish a synthetic long stock position -- at a lower cash outlay than an actual stock purchase -- by simultaneously selling customized puts and buying customized calls.
- Corporate stock repurchase programs can now sell customized puts creating the potential to buy back stock at a predetermined price while generating additional income.