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1.26 MB
Extraction Summary
1
People
4
Organizations
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Locations
0
Events
1
Relationships
3
Quotes
Document Information
Type:
Financial research report / disclaimer page
File Size:
1.26 MB
Summary
This document is page 5 of a 'Liquid Insight' financial research report dated September 22, 2016, produced by Bank of America Merrill Lynch. It contains currency trading strategy commentary regarding Brexit and the Euro, standard options risk disclaimers, and an analyst certification signed by Adarsh Sinha. The document bears a 'HOUSE_OVERSIGHT' Bates stamp, indicating it was produced during a congressional investigation.
People (1)
| Name | Role | Context |
|---|---|---|
| Adarsh Sinha | Analyst |
Author of the certification statement verifying the views expressed in the research report.
|
Organizations (4)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
The financial institution issuing the report.
|
|
| OCC |
Options Clearing Corporation, referenced regarding a white paper on options risks.
|
|
| FINRA |
Financial Industry Regulatory Authority, referenced for investor consultation.
|
|
| House Oversight Committee |
Implied via the Bates stamp 'HOUSE_OVERSIGHT' indicating this document is part of a congressional investigation.
|
Relationships (1)
Adarsh Sinha provides the Analyst Certification on the Bank of America Merrill Lynch document.
Key Quotes (3)
"EUR is underpricing Brexit and that shorting Euro was a cheaper way to express such a view via options."Source
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Quote #1
"Owning low delta EURUSD strangles may be an effective and cheap double hedge in the scenario that either the US enters a recession or the European debt crisis resurfaces."Source
HOUSE_OVERSIGHT_010613.jpg
Quote #2
"I, Adarsh Sinha, hereby certify that the views expressed in this research report about securities and issuers accurately reflect the research model applied in such analysis."Source
HOUSE_OVERSIGHT_010613.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (1,859 characters)
* EUR is underpricing Brexit and that shorting Euro was a cheaper way to express such a view via options. CHF tends to perform strongly when risks become more localized.
Closed on 28 Aug 2016: Buy EUR/USD 6m 1.00/1.20 strangle for 155 usd pips (off 1.1020 spot, DF two-way vols 12.1/12.3) (29 Feb 2016)
*Owning low delta EURUSD strangles may be an effective and cheap double hedge in the scenario that either the US enters a recession or the European debt crisis resurfaces.
*Owning low delta EURUSD strangles may be an effective and cheap double hedge in the scenario that either the US enters a recession or the European debt crisis resurfaces.
Options Risk Statement
Potential Risk at Expiry & Options Limited Duration Risk
Unlike owning or shorting a stock, employing any listed options strategy is by definition governed by a finite duration. The most severe risks associated with general options trading are total loss of capital invested and delivery/assignment risk, all of which can occur in a short period.
Potential Risk at Expiry & Options Limited Duration Risk
Unlike owning or shorting a stock, employing any listed options strategy is by definition governed by a finite duration. The most severe risks associated with general options trading are total loss of capital invested and delivery/assignment risk, all of which can occur in a short period.
Investor suitability
The use of standardized options and other related derivatives instruments are considered unsuitable for many investors. Investors considering such strategies are encouraged to become familiar with the "Characteristics and Risks of Standardized Options" (an OCC authored white paper on options risks). U.S. investors should consult with a FINRA Registered Options Principal.
The use of standardized options and other related derivatives instruments are considered unsuitable for many investors. Investors considering such strategies are encouraged to become familiar with the "Characteristics and Risks of Standardized Options" (an OCC authored white paper on options risks). U.S. investors should consult with a FINRA Registered Options Principal.
For detailed information regarding the risks involved with investing in listed options: http://www.theocc.com/about/publications/character-risks.jsp.
Analyst Certification
I, Adarsh Sinha, hereby certify that the views expressed in this research report about securities and issuers accurately reflect the research model applied in such analysis. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or view expressed in this research report.
I, Adarsh Sinha, hereby certify that the views expressed in this research report about securities and issuers accurately reflect the research model applied in such analysis. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or view expressed in this research report.
Bank of America Merrill Lynch
Liquid Insight | 22 September 2016 5
HOUSE_OVERSIGHT_010613
Liquid Insight | 22 September 2016 5
HOUSE_OVERSIGHT_010613
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