Bears Eye Contingent Premium Puts (DW)

Derivatives Weekly 뉴스

Contingent premium put에 대한 기관투자자 관심이 많다고 하는데.
옵션매입비용을 지불하지 않는 비상용 Put이라. 흥미로운데..
매도자의 헤징비용을 어디에서 확보할까..


Contingent premium put

The instrument allows an investor to buy a put on an equity index with a fixed strike below its current value. If the index falls to the strike the investor has to deliver the premium to the option writer.
But if the index rallies the investor doesn’t pay the premium and doesn’t underperform the index by virtue of not paying the premium for an unused option.