Barrier Options: Strategies
Interactive

Barrier Options: Strategies

Intuition Publishing
Updated Sep 24, 2020

Barrier options give traders some flexibility when assessing their hedging and speculating appetites. They are often a cheaper alternative to vanilla options, and are incorporated into a variety of trading strategies by options traders and analysts. We discuss their suitability for traders who employ technical analysis techniques in their trading strategies, and look at two scenarios which illustrate this suitability. We conclude with a discussion of rainbow barrier options.