White paper

Nov. 21, 2018

Know What You Own

Understanding the Diversity of Options Strategies

White Paper — Overview

Over 3 billion options contracts have been traded so far in 2018, passing through 15 exchanges. The world of options has expanded to become a versatile tool used by millions across the globe to help better manage their investment needs. However, options utilization can be overwhelming with all there is to know about evaluating them, so in this paper we:
  1. Breakdown the history and how their standardization drastically increased the use of them;
  2. Unpack synthetics and how they can provide a deeper understanding of a strategy’s risk/return profile so one can make better-informed decisions regarding the right strategy for their portfolio;
  3. Identify and compare/contrast the various different types of strategies within Morningstar’s large ‘Options-Based” category, to help due diligence and investment selection processes.