Investigation of digital option trading

Abstract

Nowadays there are plenty of ways how people can invest their savings in order to increase their wealth in the upcoming future and option contracts are one of the ways to achieve this. It is possible to trade option contracts by using many different strategies that can bring many opportunities for the investors. However, in order to succeed and end up with a profit, relevant steps have to be taken as well as many risks considered. The goal of this article is to create and investigate selected option trading strategies through their implementation in digital trading platform. In order to achieve this goal theoretical perspective on derivatives and their fundamentals, including option background and trading strategies, are being analysed, selected triple – strip and strap – option trading strategies are being created and implemented in “IQ Option” digital trading platform, and finally results of both trading processes are being analysed and evaluated. After examining theoretical aspects of derivatives and option trading as well as implementing the presented methodology for option strategies creation, final conclusions are being given.