lne SLreeL CaplLal

ConLexL
W 1echnology Pedge lund
W MarkeLneuLral"/oslLlveAlpha SLraLegy
W Levered lund
W CompeLlLlve AdvanLage ln plcklng 1ech SLocks
W ConLemplaLlng changlng sLraLegy Lo buylng
puLs on nasdaq (due Lo hlgh volaLlllLy)
ComparaLlve Analysls
Short Se|||ng nedge ut opt|on hedge
8eLurn on orLfollo ls reLurn due Lo flrm
speclflc parameLers
8eLurn on porLfollo ls sum of reLurns
due Lo flrm speclflc parameLers and puL
payoffs
Plgh correlaLlon beLween markeL and
1ech SLocks could cause problem
Lxerclslng uL ls noL an CbllgaLlon hence
loss wlll be llmlLed Lo Lhe opLlon
premlum
ln Lhe lasL 20 worsL days of nasdaq
performance lL has performed preLLy
badly (30 Llmes negaLlve reLurns)
ln Lhe lasL 20 worsL days of nasdaq
performance lL has performed beLLer
Lhan shorL selllng (20 Llmes negaLlve
reLurn)
8eLurn due Lo shorL selllng ls lesser Lhan
uL opLlon hedge for 20 worsL days for
nasdaq
8eLurn due Lo shorL selllng ls more Lhan
ShorL Selllng Pedge for 20 worsL days for
nasdaq
Scenarlo Analysls
Scenar|o Short Se|||ng nedge ut Cpt|on nedge
SLocks
MarkeL
SLocks up aln
MarkeL up hedglng wlll
cause loss
SLocks up aln
MarkeL up Loss of
opLlon premlum
SLocks
MarkeL
SLocks up aln
MarkeL uown aln
SLocks up aln
MarkeL uown aln buL
reduced by opLlon
premlum
SLocks
MarkeL
SLocks uown Loss
MarkeLs up Loss
SLocks uown Loss
MarkeLs up Loss of
opLlon premlum
SLocks
MarkeL
SLocks uown loss
MarkeLs uown aln
SLocks uown Loss
MarkeLs uown aln buL
reduced by opLlon
premlum
W PlghesL up movemenL113/14821
W PlghesL uown MovemenL 40/4 9
W