What is time to expand?
Time range is access or strategy to buy and sell. In the context of time distribution, the investor will use a combination of PUT and call options to achieve the desired result. This option strategy will include options that have the same price of strike, but that carry different expiration data.
Sometimes it is referred to as horizontal spread, the main function of the time range is to allow the investor to continue to return the relevant options. The common structure for time is the sale of Put or Call, which is close to the end of its period, while buying a similar option that carries the same price of strike and is longer or for this reason. This approach helps to maintain a portfolio balanced in terms of types of possibilities, and also allows the investor to continue using similar benefits without having to be too concerned about the expiry date.
One of the simplest ways to understand the operating structure of time propagation is to start with the possibleA sharp, which is already in the portfolio. Assuming that the investor has the option that is set to expire in the next thirty days, the portfolio intermediary may be asked to find a similar option that in the future bears the expiry date, which has been three months in the future. If there is a possibility that is similar to the currently held options and carries the same price of the strike, the intermediary sells the current option and uses the proceeds to purchase the option with a longer term expiry date. This effectively allows the investor to enjoy another period or spread two months in which the benefits of holding the possibility will continue.
time access can be used if it is possible to identify and purchase similar options with the same strike price. Many investors use this strategy for Regular Base, which allows them to take advantage of stable strikes. As with any investment opportunity, the investor and the broker take steps to ensure that KOMbinace of purchase and sales was in favor of the investor in the short and long term.