Comparison of option types (3) – Ladder options

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3 Main Types Of Maintenance Strategies (Side-by-side Comparison)

3 Main Types Of Maintenance Strategies (Side-by-side Comparison)

    December 4, 2020 Bryan ChristiansenMaintenance

While there are a lot of different types of maintenance strategies out there, most discussions about which strategy you should implement come down to comparing reactive vs preventive vs predictive maintenance .

If you are or were a part of this debate, you’re probably aware that the answer isn’t always that obvious.

Predictive maintenance is the best strategy on paper, but that doesn’t mean it is the best fit for every organization or for every asset.

Each strategy has its benefits and downsides, so we decided to create an infographic that gives you a side by side comparison of these three strategies.

We split it into 3 main sections:

  1. Pros and Cons
  2. Comparison graphs (Implementation cost and difficulty, Potential ROI, Dependency on CMMS, sensors, and training)
  3. How to choose the right strategy

We hope it gives you a practical introduction to this topic and serves as a good starting point for deciding which types of maintenance you want to implement in your facility.

Reactive vs Preventive vs Predictive Maintenance

One thing people often get wrong is thinking that reactive maintenance isn’t really a strategy because it doesn’t involve any proactive maintenance planning.

But that is a wrong way to think about it.

Just because you are reactive, that doesn’t mean you can’t also be strategic and organized about it.

You still want to ensure that the breakdowns are fixed as soon as possible to minimize the downtime and associated costs. This means you need to have a way to track available spare parts, quickly communicate changes in task priority, have the ability to stay on top of pending maintenance activities, and track important maintenance KPIs like failure metrics .

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To be able to do all of these things, even organizations that focus on reactive maintenance are looking to implement modern CMMS software .

That being said, reactive maintenance is never a good approach to maintaining important assets. The risk is simply too big as the cost of unexpected breakdowns can be a downfall of even major corporations.

So, as a natural progression from reactive maintenance, the most obvious way to improve your maintenance operation is by implementing a preventive maintenance strategy .

Since it doesn’t have complex or expensive implementation requirements, preventive maintenance is often the go-to option for every business that wants to reduce the long-term costs of their maintenance operations and stay competitive in the market.

However, as technology improves, businesses can look to further optimize their maintenance operations with predictive maintenance by eliminating some of the disadvantages of preventive maintenance (like excessive maintenance).

But predictive maintenance isn’t without its flaws. Expensive condition-monitoring equipment that is complicated to install and specialized training you need to effectively perform it are still obstacles many organizations are not ready to tackle.

The good news is that the price of condition monitoring sensors is starting to go down, making it accessible to a wider array of organizations.

Limble offers a Modular IoT sensor kit that streamlines the whole implementation process. Now any business can start a Predictive maintenance program for under $1,000!

Which Types Of Maintenance Strategies Should You Use

If you carefully read the above heading, you will notice that we are going to talk about implementing multiple types of maintenance strategies, and not just focusing on a single one.

The reason for that is very simple.

Your facility has different assets that require different levels of attention. That means that it often isn’t cost-effective to implement the same maintenance strategy for all of them.

A great way to decide which assets could benefit the most from which type of maintenance is to perform an RCM analysis .

You will often find out that your critical assets deserve to be monitored through predictive maintenance, while others can be maintained through preventive and, in some cases, reactive maintenance.

As with any important business decision, research is unavoidable. The only way to make an informed decision is to:

  1. Understand the requirements of each strategy
  2. Understand the needs of your facility
  3. Have a clear overview of your available resources for implementation

If you’ve got that covered, the answer should present itself.

As always, if you looking for a CMMS that can help you implement any type of maintenance strategy, let’s see if Limble is the right option for you.

Call Option vs. Put Option

Options give investors the right — but no obligation — to trade securities, like stocks or bonds, at predetermined prices, within a certain period of time specified by the option expiry date. A call option gives its buyer the option to buy an agreed quantity of a commodity or financial instrument, called the underlying asset, from the seller of the option by a certain date (the expiry), for a certain price (the strike price). A put option gives its buyer the right to sell the underlying asset at an agreed-upon strike price before the expiry date.

The party that sells the option is called the writer of the option. The option holder pays the option writer a fee — called the option price or premium. In exchange for this fee, the option writer is obligated to fulfill the terms of the contract, should the option holder choose to exercise the option. For a call option, that means the option writer is obligated to sell the underlying asset at the exercise price if the option holder chooses to exercise the option. And for a put option, the option writer is obligated to buy the underlying asset from the option holder if the option is exercised.

Comparison chart

Call Option versus Put Option comparison chart
Call Option Put Option
Definition Buyer of a call option has the right, but is not required, to buy an agreed quantity by a certain date for a certain price (the strike price). Buyer of a put option has the right, but is not required, to sell an agreed quantity by a certain date for the strike price.
Costs Premium paid by buyer Premium paid by buyer
Obligations Seller (writer of the call option) obligated to sell the underlying asset to the option holder if the option is exercised. Seller (writer of a put option) obligated to buy the underlying asset from the option holder if the option is exercised.
Value Increases as value of the underlying asset increases Decreases as value of the underlying asset increases
Analogies Security deposit – allowed to take something at a certain price if the investor chooses. Insurance – protected against a loss in value.

Contents: Call Option vs Put Option

Motivations

Buyers of a call option want an underlying asset’s value to increase in the future, so they can sell at a profit. Sellers, in contrast, may suspect that this will not happen or may be willing to give up some profit in exchange for an immediate return (a premium) and the opportunity to make a profit from the strike price.

The buyer of a put option either believes it’s likely the price of the underlying asset will fall by the exercise date or hopes to protect a long position on the asset. Rather than shorting an asset, many choose to buy a put, as only the premium is at risk then. The put writer does not believe the price of the underlying security is likely to fall. The writer sells the put to collect the premium.

Expiry and Option Chains

There are two types of expirations for options. The European style cannot be exercised until the expiration date, while the American style can be exercised at any time.

The price of both call options and put options are listed in a chain sheet (see example below), which shows the price, volume, and interest for each strike price and expiration date.

Strike Price

For each expiry date, an option chain will list many different options, all with different prices. These differ because they have different strike prices: the price at which the underlying asset can be bought or sold. In a call option, a lower stock price costs more. In a put option, a higher stock price costs more.

Profits

With call options, the buyer hopes to profit by buying stocks for less than their rising value. The seller hopes to profit through stock prices declining, or rising less than the fee paid by the buyer for creating a call option. In this scenario, the buyer will not exercise their right to buy, and the seller can keep the paid premium.

With put options, the buyer hopes that the put option will expire with the stock price above the strike price, as the stock does not change hands and they profit from the premium paid for the put option. Sellers profit if the stock price falls below the strike price.

Risks

Options are high-risk, high-reward when compared to buying the underlying security. Options become entirely worthless after they expire. Also, if the price does not move in the direction the investor hopes, in which case she gains nothing by exercising the options. When buying stocks, the risk of the entire investment amount getting wiped out is usually quite low. On the other hand, options yield very high returns if the price moves drastically in the direction that the investor hopes. The spreadsheet in the example below will help make this clear.

Example

Consider a real-world example of options trading. Here is a subset of options available for GOOG (so the underlying asset here is Google stock) on a day when the stock price was around $750, as taken from Yahoo Finance. The expiry date for all these options is within 2 days. Call options where the strike price is below the current spot price of the stock are in-the-money.

For simplicity, we will only analyze call options. This spreadsheet shows how options trading is high risk, high reward by contrasting buying call options with buying stock. Both require the investor to believe that the stock price will rise. However, call options give very high rewards compared to the amount invested if the price appreciates wildly. The downside is that the investor loses all her money if the stock price does not rise well above the strike price. The spreadsheet can be downloaded here.

Trading Options vs. Trading Stocks

With options, investors have leverage. When a prediction is accurate, an investor stands to gain a very significant amount of money because option prices tend to be much more volatile. However, the potential for higher rewards comes with greater risk. For example, when buying shares, it’s usually unlikely that the investment will be entirely wiped out. But money spent buying options is entirely wiped out if the stock price moves in the opposite direction than expected by the investor.

Put Options vs. Short Selling

There are two ways for speculators to bet on a decline in the value of an asset: buying put options or short selling. Short selling, or shorting, means selling assets that one does not own. In order to do that, the speculator must borrow or rent these assets (say, shares) from his or her broker, usually incurring some fee or interest per day. When the speculator decides to “close” the short position, he or she buys these shares on the open market and returns them to their lender (broker). This is called “covering” ones short position.

Sometimes brokers force short positions to be covered if the share price rises so high that the broker believes there isn’t going to be enough money in the account to sustain the short position. If the market price of the shares at the time the position is covered is higher than it was at the time of shorting, short sellers lose money. There is no limit to the amount of money a short seller can lose because there is no limit to how high the stock price will go. In contrast, the ceiling on the amount of loss that buyers of put options can incur is the amount they invested in the put option itself. Some speculators view this loss ceiling as a safety net.

Compare GrandOption vs HY Options

What is better GrandOption or HY Options?

Getting the right binary option trading srevice for your company is difficult with too much features, choices, and offers to consider. However, using our review directory will help you to streamline the selection steps by getting all main services in one place.

For example, you can compare GrandOption and HY Options for their tools and overall scores, namely, 7.6 and 8.0, respectively. Similarly, you can compare which provider has higher general user satisfaction rating: 98% (GrandOption) and 96% (HY Options) to learn which one is the better choice. Don’t simply choose the platform with the lowest minimum deposit, but the platform that gives the best value.

We know that not all businesses have the time to test a wide range of different services, so we came up with a list of recommendations that you may find useful. Our top selections for the Binary Options Brokers category are: OneTwoTrade, IQ Option, GTOptions .

GrandOption

HY Options

IQ Option

This product is our partner, which means they paid for being featured as one of the suggestions. Our team takes great care to ensure all sugested products are reliable, top-quality solutions.

GrandOption

SmartScore™

User Satisfaction

Minimum Deposit

Accepts US Clients

Comission

Place Trades Over Phone

Located In

Trade Types

Capital Option offers the following trading types:

Deposit Options

MoneyGram, Webmoney, Debit Card

Payout ratios

Platform

Platform type: Optimus

Platform Languages: French, Russian

OS Compatibility: Mac OS, iOS, Windows, Android

Streaming News Feed: No

Email Alerts: Yes

Mobile Alerts: No

Trading Accounts

Traders are offered with the following choices for their trading accounts:

Payouts Percentage

Withdrawal Options

MoneyGram, Webmoney, Credit Card

Assets

Metals, Indices, Stocks

Available Support

General Info

Grand Option provides a luxurious locale for trading binary options. Trade only the finest binary options from our unlimited liquidity pool.

Company Email

Contact No.

Product Comparisons

HY Options

SmartScore™

User Satisfaction

Minimum Deposit

Accepts US Clients

Comission

Place Trades Over Phone

Located In

Trade Types

HY Options offers six trade types:

  • Pair Options
  • One Touch
  • Long Term
  • Ladder Options
  • Day Options (High/Low)
  • 60 Seconds

Deposit Options

Credit Card, Bank Wire Transfer

Payout ratios

Maximum return is 82% on the standard options. There is no rebate for losing trades.

Platform

Platform type: SpotOption

Platform Languages: English, Arabic

OS Compatibility: Mac OS, iOS, Windows, Android

Streaming News Feed: Yes

Email Alerts: Yes

Mobile Alerts: Yes

Trading Accounts

HY Options offers three types of trading accounts:

  • Minimum deposit is $100
  • Offers introductory training and an account manager
  • Web/Mobile platforms

  • Minimum deposit is $2500
  • Offers trading reports and signals, market reviews, and advanced training
  • 1 professional account manager is assigned to the account
  • Web/Mobile Platforms
  • Minimum deposit is $10,000
  • Deposit bonus is 50%
  • Includes trading signals, market reviews, and professional training
  • Specialist account manager is assigned to the account
  • Web/Mobile Platforms

Payouts Percentage

Withdrawal Options

Credit Card, Bank Wire Transfer

Assets

Forex, Metals, Oil, Gold, Indices, Stocks, Commodities

Available Support

General Info

HY Options is a reliable binary options broker that offers an ingenious trading environment to traders.

Company Email

Contact No.

Product Comparisons

IQ Option

This product is our partner, which means they paid for being featured as one of the suggestions. Our team takes great care to ensure all sugested products are reliable, top-quality solutions.

SmartScore™

User Satisfaction

Minimum Deposit

Accepts US Clients

Comission

Place Trades Over Phone

Located In

Trade Types

HY Options offers six trade types:

  • Pair Options
  • One Touch
  • Long Term
  • Ladder Options
  • Day Options (High/Low)
  • 60 Seconds

Deposit Options

Credit Card, Bank Wire Transfer

Payout ratios

Maximum return is 82% on the standard options. There is no rebate for losing trades.

Platform

Platform type: In-house

Platform Languages: English, Spanish, Russian, Chinese, Arabic

OS Compatibility: Mac OS, Windows, Android

Streaming News Feed: No

Email Alerts: Yes

Mobile Alerts: Yes

Trading Accounts

HY Options offers three types of trading accounts:

  • Minimum deposit is $100
  • Offers introductory training and an account manager
  • Web/Mobile platforms
  • Minimum deposit is $2500
  • Offers trading reports and signals, market reviews, and advanced training
  • 1 professional account manager is assigned to the account
  • Web/Mobile Platforms
  • Minimum deposit is $10,000
  • Deposit bonus is 50%
  • Includes trading signals, market reviews, and professional training
  • Specialist account manager is assigned to the account
  • Web/Mobile Platforms

Payouts Percentage

Withdrawal Options

Credit Card, Bank Wire Transfer

Assets

Forex, Metals, Oil, Gold, Indices, Stocks, Commodities

Available Support

General Info

IQ Option has used the latest technologies to create a trading platform that gives its clients an easy, smooth, and fun trading experience.

Company Email

Contact No.

Product Comparisons

Both GrandOption and HY Options were tested by a group of independent B2B experts who carried out a full examination of all core aspects of every app. Their total rating was calculated by means of unique SmartScore model that calculates a separate partial score to each factor like: main functionalities, customer support, mobile device support, security, user satisfaction and media presence. We are aware that useful features are not the only factor important to a company so we do our best to pay attention to all aspects of a app before calculating its final rating.

Page last modified 2020-03-01

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