Covered writes-- the exotic way

Discussion in 'Options' started by tradingjournals, Jul 17, 2010.

  1. The idea is similar to the tradditional covered write (buy underlier, sell call) extended to exotic options: Buy the underlier, and no-touch options. If no touch, one has the payoff from the no-touch options. If there is a touch, the underlier is sold for a profit underlier minus the amount of no touch premium spent.

    Was it tested in the literature? Are you using it? Do you know of others using it? Etc


    Any results of equivalency to other options strategies?