Quarterly Outlook
Equity outlook: The high cost of global fragmentation for US portfolios
Charu Chanana
Chief Investment Strategist
Investment and Options Strategist
Summary: In this article we provide an analysis of defined risk strategies for the CAC 40 Index. It compares various approaches, highlighting their potential benefits and drawbacks. The information is aimed at traders seeking to understand different risk management techniques applicable to the CAC 40. The content is factual and may be useful for those involved in trading this particular index.
Bullish Credit Put Spread | Bullish Debit Call Spread |
Max Risk: USD 316 Max Profit: USD 184 Breakeven Point: 7281.06 Probability of Profit: 57.25% Premium Received: USD 184 Cost Structure: Credit (receive premium) Delta Position: 0.0509 Theta Position: -0.0293 | Max Risk: USD 277 Max Profit: USD 223 Breakeven Point: 7327.7 Probability of Profit: 48.88% Premium Paid: USD 277 Cost Structure: Debit (pay premium) Delta Position: 0.054 Theta Position: -0.0678 |
Iron Condor | Call Butterfly |
Max Risk: USD 361 Max Profit: USD 139 Probability of Profit: 66.73% Breakeven Points: 6936.1 and 7663.9 Strategy: Neutral, benefits from low volatility Theta Position: 0.2486 (positive time decay) | Max Risk: USD 650 Max Profit: USD 1850 Probability of Profit: 51.74% Breakeven Points: 7065 and 7435 Strategy: Neutral, Theta Position: 0.7153 (positive time decay) |
Bearish Credit Call Spread | Bearish Debit Put Spread |
Max Risk: USD 199 Max Profit: USD 301 Probability of Profit: 55.68% Breakeven Point: 7280.1 Theta Position: 0.0384 (positive time decay) Strategy: Bearish | Max Risk: USD 185 Max Profit: USD 315 Probability of Profit: 44.00% Breakeven Point: 7281.5 Theta Position: 0.0366 (positive time decay) Strategy: Bearish |
Equity outlook: The high cost of global fragmentation for US portfolios
Commodity Outlook: Commodities rally despite global uncertainty