Fidelity Low Duration Bond Factor ETF · CBOE:FLDR
Fidelity Low Duration Bond Factor ETF — Fidelity Investments — Investor Presentation (May 2023)
34 slides from Fidelity Low Duration Bond Factor ETF's investor presentation, May 2023
Slide 1: Buying Options
A Fidelity Investments Webinar Buying Options BROKERAGE: OPTIONS
Slide 2: Options Trading Webinar Series
Introduction to Options Get to know the basics of options trading; learn key terms and concepts essential for any new options trader. Buying Options Understand what to expect when buying options; learn the difference between calls and puts. Options Selling Options Trading Understand what to expect w
Slide 3: Agenda
BROKERAGE: OPTIONS Review Options Basics Execute a Trade Buy a Call Buy a Protective Put Buy a Put Agenda 3
Slide 4: Review Options Basics
oO Review alll Options Basics 6 Fidelity
Slide 5: Review: Anatomy of an Options Symbol
BROKERAGE: OPTIONS Review: Anatomy of an Options Symbol Example: Plain English Symbol: SPY Jan 21, 2022 Call 208 SPY220121C208 The symbol of Year of the Month of the Day of the C for a Call, The Strike Price the underlying expiration expiration expiration or P for a Put Holder (buyer) of this call h
Slide 6: Review: Premium Components
BROKERAGE: OPTIONS Review: Premium Components Premium = Intrinsic Value + Extrinsic Value An options contract that has intrinsic value is “in the money” An options contract that has no intrinsic value is “out of the money” 6
Slide 7: Review: Bullish or Bearish?
BROKERAGE: OPTIONS Review: Bullish or Bearish? Long Call Long Put Short Call Short Put 7
Slide 8: Buy a Call
Buy a Call Fidelity.
Slide 9: Buy a Call
BROKERAGE: OPTIONS Buy a Call Situation Market Forecast Action XYZ is trading at Bullish on Buy one XYZ APR $42 a share the stock, but 42.50 call for $2.10 want limited (pay $210) downside risk 9
Slide 10: Buy a Call: Profit and Loss Table
BROKERAGE: OPTIONS Buy a Call: Profit and Loss Table Buy One XYZ APR 42.50 Call @ 2.10 PRICE AT EXP OPTION COST VALUE AT EXP PROFIT/(LOSS) 50 2.10 7.50 5.40 45 2.10 2.50 0.40 44.60 2.10 2.10 0 (Breakeven) 42.50 2.10 0 (2.10) 40 2.10 0 (2.10) 37.50 2.10 0 (2.10) Company trading symbols are provided a
Slide 11: Buy a Call: Profit and Loss Diagram
BROKERAGE: OPTIONS Buy a Call: Profit and Loss Diagram +5 Buy One XYZ APR 42.50 0 Call @ 2.10 40 42.50 45 47.50 –5 Company trading symbols are provided as examples and for illustrative purposes only and should not be considered an offer to sell, a solicitation of an offer to buy, or a recommendation
Slide 12: Buying a Stock vs. Buying a Call
BROKERAGE: OPTIONS Buying a Stock vs. Buying a Call Buying a stock Buying a call • Substantial risk of capital VS • Leverage with risk limited (stock could go to zero) to premium paid • Lower break-even point • Higher break-even point • Limited life, value generally decreases with time 12 NOTE: Call
Slide 13: Buy a Put
©), Buy a Put 6 Fidelity
Slide 14: The Put Buyer
BROKERAGE: OPTIONS The Put Buyer The Put Buyer Risk/Reward Profile • Has the right to sell the underlying • Risk limited to option premium stock at an agreed-upon price (the paid plus commission strike) until the expiration date • Substantial profit potential until • For this right, the put buyer pa
Slide 15: Buy a Put
BROKERAGE: OPTIONS Buy a Put Situation Market Forecast Action XYZ is trading at Bearish on Buy one XYZ APR $42.50 a share the stock, 42.50 put for $2.30 but want (pay $230) limited risk Company trading symbols are provided as examples and for illustrative purposes only and should not be considered a
Slide 16: Buy a Put: Profit and Loss Table
BROKERAGE: OPTIONS Buy a Put: Profit and Loss Table Buy One XYZ APR 42.50 Put @ 2.30 PRICE AT EXP OPTION COST VALUE AT EXP PROFIT/(LOSS) 50 2.30 0 (2.30) 45 2.30 0 (2.30) 42.50 2.30 0 (2.30) 40.20 2.30 2.30 0 (Breakeven) 40 2.30 2.50 0.20 37.50 2.30 5 2.70 Company trading symbols are provided as exa
Slide 17: Buy a Put: Profit and Loss Diagram
BROKERAGE: OPTIONS Buy a Put: Profit and Loss Diagram +5 Buy One XYZ APR 42.50 0 Put @ 2.30 40 42.50 45 –5 Company trading symbols are provided as examples and for illustrative purposes only and should not be considered an offer to sell, a solicitation of an offer to buy, or a recommendation for the
Slide 18: Summary of Buying Options
BROKERAGE: OPTIONS Summary of Buying Options Buying Calls Buying Puts • Right to buy • Right to sell • Long market exposure with • Short market exposure with risk limited to premium paid risk limited to premium paid for options plus commissions for options plus commissions • Can potentially be used
Slide 19: Buy a Protective Put
Buy a Protective Put 6 Fidelity.
Slide 20: Protective Put Strategy
BROKERAGE: OPTIONS • To limit downside risk potential on a stock you own, buy a put option on the stock. • The put owner will then have the right to sell the stock at an agreed-upon price (the strike price) Protective Put until the expiration date. Strategy • There is a second reason to buy a put –
Slide 21: Protective Put Risk/Reward Profile
BROKERAGE: OPTIONS • Risk is limited to the option premium paid and out-of-the-money amount at the time of trade (if any) • Can provide limited protection against losses if Protective Put the stock goes below the strike price Risk/Reward • We do not have to exercise the put, since we Profile are the
Slide 22: Protective Put Strategy
BROKERAGE: OPTIONS Protective Put Strategy Situation Market Forecast Action Long 100 shares Bullish on the stock, Buy one QRS APR 90 of QRS stock but want limited put for $0.95 (pay $95) at $92 downside risk Company trading symbols are provided as examples and for illustrative purposes only and shou
Slide 23: Protective Put: Profit and Loss Table
BROKERAGE: OPTIONS Protective Put: Profit and Loss Table Long 100 QRS @ 92 Buy one QRS APR 90 Put @ 0.95 PRICE AT EXP STOCK P/(L) PUT P/(L) TOTAL P/(L) 100 8.00 (0.95) 7.05 95 3.00 (0.95) 2.05 92.95 0.95 (0.95) 0 (Breakeven) 90 (2.00) (0.95) (2.95) 85 (7.00) 4.05 (2.95) 80 (12.00) 9.05 (2.95) Compan
Slide 24: Protective Put: Profit and Loss Diagram
BROKERAGE: OPTIONS Protective Put: Profit and Loss Diagram +5 Long QRS @ 92 Long 100 QRS @ 92, 0 Buy One APR 90 85 90 95 100 Put @ 0.95 –5 Breakeven at expiration: Initial stock price + option premium 92 + 0.95 = 92.95 Company trading symbols are provided as examples and for illustrative purposes on
Slide 25: Execute a Trade
Execute a Trade 6 Fidelity
Slide 26: Before You Place a Trade, Consider…
BROKERAGE: OPTIONS Before You Place a Trade, Consider… 1 2 3 Buying one call is Consider how Be aware of position the equivalent of much risk you size to manage buying 100 shares are comfortable your risk of stock taking on 26
Slide 27: Place a Trade on Fidelity.com
BROKERAGE: OPTIONS Place a Trade on Fidelity.com News & Research > Options > Option Chain Start a trade from the Option Chain • Easily see all the available options • Fully customizable to meet your needs 27 The screenshot is for illustrative purposes only.
Slide 28: Place a Trade on Fidelity.com
BROKERAGE: OPTIONS Place a Trade on Fidelity.com News & Research > Options > Option Chain • Easy access to your balances and positions • Quickly adjust to contract specifications 28 The screenshot is for illustrative purposes only.
Slide 29: Now What?
BROKERAGE: OPTIONS Now What? LONG OPTIONS SHORT OPTIONS Sell it Buy it back Fulfill obligation Exercise it when assigned Let it expire Let it expire 29
Slide 30: Options Trading Webinar Series
Introduction to Options Get to know the basics of options trading; learn key terms and concepts essential for any new options trader. Buying Options Understand what to expect when buying options; learn the difference between calls and puts. Options Selling Options Trading Understand what to expect w
Slide 31: Visit the Fidelity Learning Center
Visit the Fidelity Learning Center Learn more about options Read: Access the Options Strategy Guide Watch: Check out videos that cover options basics Attend: Register for monthly webinars 31
Slide 32: Glossary
BROKERAGE: OPTIONS Glossary Breakeven The underlying stock price at which an options strategy (or combined stock and options strategy) has a zero loss and zero gain. Long Call With a long call option, the buyer has the right to buy shares of the underlying security at a specific price for a specifie
Slide 33: Thank You
Thank Please join us for our upcoming webinars You For more information, please visit Fidelity.com > News & Research > Options Questions? Contact a Fidelity representative at 877-907-4429 33
Slide 34: Important Information
BROKERAGE: OPTIONS Important Information Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry a dditional risk. Before trading options, contact Fidelity Investments by calling 800-544-5115 to receive a copy of Characteristics and
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