PUT ITM - COMO MELHORAR SUA ROLAGEM E DIMINUIR SUA EXPOSIÇÃO (OPÇÕES)

Summary

In this video, Felipe Borges from the 'Descomplicando as Opções' channel discusses a potential strategy for handling puts in a difficult market situation, particularly for individuals dealing with financial positions in companies like Bradesco or BF. He demonstrates how to adjust a trading position when the market is dropping and how to reduce exposure through strategic rollovers. Emphasizing the importance of risk calculation, Felipe explains how to lower potential losses and manage options effectively. He also advises on managing call positions and suggests further strategies for mitigating risks and achieving better results.

Takeaways

• 😀 The video addresses a strategy for managing a potential problem in options trading, specifically for individuals dealing with positions in Bradesco (BBDC3) or a similar stock.
• 😀 The focus is on how to manage a position when dealing with significant losses and the inability to execute profitable rollovers.
• 😀 The example used assumes the trader is short on 10,000 put contracts (10 kg) with a strike price of 19 reais, while the underlying stock price is at 16 reais.
• 😀 The strategy proposed involves reducing exposure by rolling some positions to a lower strike, which can help reduce risk in the event of a falling market.
• 😀 It’s important to always calculate risks and potential benefits before executing any strategy in the market.
• 😀 The concept of ‘rolling’ positions is introduced, where traders adjust their options to future contracts in an attempt to limit their losses.
• 😀 In the example, the trader reduces their exposure by rolling 9,000 contracts to the N19 strike and 1,000 contracts to a different strike (16 reais).
• 😀 A significant emphasis is placed on risk management, with warnings not to sell naked calls unless they are part of a structured position.
• 😀 If the stock price continues to drop, the trader may end up with fewer positions, which can reduce their exposure to the underlying asset.
• 😀 If the stock price unexpectedly rises, the trader could face losses but may have reduced their exposure from a potential 30,000 reais loss to a smaller 8,000 reais loss.
• 😀 The video also touches on the possibility of seeking professional advisory services for more personalized strategies and portfolio management.

Q & A

What is the main focus of the video?

The main focus of the video is on managing put options in situations where the trader faces losses, particularly when dealing with positions in banks like Bradesco or assets like BF.

What should traders calculate before implementing the strategy discussed in the video?

Traders should calculate both the risks and the potential benefits of the strategy, considering how it fits with their individual portfolio before making any decisions.

What does 'rolagem' mean in this context?

'Rolagem' refers to rolling over options, where a trader closes their existing option position and opens a new one with a different expiration date or strike price.

What is the risk of being sold in 10,000 units of puts at a strike price of 19 when the asset is at 16?

The intrinsic value of the position is R$ 3 per unit (difference between 19 and 16). If the asset continues to fall, the trader may face increasing losses or have to pay for rolling the position to avoid further risks.

What is the suggested strategy if a trader is unable to collect enough premium from rolling over options?

The suggested strategy is to sell a call option to help finance the roll-over, while making sure the position is properly structured to avoid selling uncovered options.

What happens if the price of the asset rises after rolling over the options?

If the asset price rises, the trader will incur a loss on the short call option, but if the price continues to climb, the trader might reduce their exposure and losses by rolling the position again.

How can a trader reduce their exposure when facing a situation like this?

The trader can reduce their exposure by selling part of their position, such as selling 1 kg of options to decrease the overall risk. This strategy reduces the leverage and the total exposure to market movements.

Why is it important not to sell naked calls according to the video?

Selling naked calls is risky because it exposes the trader to unlimited losses if the asset price increases significantly. Instead, the video suggests that the calls should be structured within a position to manage risk.

What does the author consider a 'good management' in this situation?

A good management is reducing the position size and risk significantly, as the trader goes from being exposed to 10,000 units of puts to a much smaller exposure (e.g., 2,000 units), all while keeping the risk under control.

What is the ultimate goal for the trader in this type of situation?

The ultimate goal is to minimize risk, manage exposure, and reduce potential losses, ideally reaching a point where the trader's risk is significantly lower, as illustrated in the example where the trader goes from a potential loss of R$ 30,000 to R$ 8,000.