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Article
On Maximizing Annualized Option Returns
Finance & CIS Faculty Works
  • Charles J. Higgins, Loyola Marymount University
Document Type
Article
Publication Date
10-1-2014
Abstract
While options do generally demonstrate an increase in prices as time increases, an annualized return of their excess premiums exhibit other characteristics including a lower return on options farther out of the money, that as the exercise price is farther out of the money that the expiration with the greatest annualized return is longer in time, and more interestingly that for underlying securities having larger standard deviations the greatest annualized option returns are found with options having shorter expirations.
Citation Information

Higgins, Charles (2014). On maximizing annualized option returns. International Research Journal of Applied Finance, 5(10), 1271-1285.