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Option Strategies

QuestionAnswer
Long RST Nov 50 call @ 7 Short RST Nov 60 call @3 Vertical/price debit call spread (long option higher premium, lower XP) (Same expiration date/different XP) Bull
Long RST Nov 60 call @ 3 Short RST Jan 60 call @ 5 Time/calendar credit call spread (Short option higher premium, lower XP) Bear
Long RST Jan 55 call @6 Short RST Nov 60 call @ 3 Diagonal debit call spread (Long option higher premium, lower XP) Bull
Long 1 RST Nov 55 put @ 6 Short 1 RST Nov 50 put @ 3 Vertical/price Debit put spread (Long option higher premium, higher XP) Bear
Long 1 RST Nov 55 put @ 2 Short 1 RST Nov 65 put @ 9 Vertical/price credit put spread (Short option higher premium, higher XP) Bull
Long 1 RST Jan 50 call @ 3 Long 1 RST Jan 50 put @ 4 Option Type? Max gain/loss/breakeven? Long straddle (Same XP and expiration) Expects volatility Max gain = unlimited Max loss = total premiums pd 2 breakevens: XP + Both premiums AND XP - both premiums
Short 1 RST Jan 45 call @ 4 Short 1 RST Jan 45 put @ 5 Option type? Max gain/loss/break even? Short straddle (Same XP and expiration) Expects no volatility Max gain = premiums collected Max loss = unlimited 2 breakevens: XP + both premiums and XP - both premiums
Long RST Jan 40 call @ 5 Long RST Jan 45 put @ 7 Long combo
Short 1 TST Jan 20 call @ 6 Short 1 RST Jan 30 put @ 7 Short combo
Call is @ 40, stock is at 43 In/out/at? By how much? In by $3
Put is @ 40, stock is @ 37 In/out/at? By how much? In by $3
Long RST Jan 65 call @ 7, CMV is 70 In/out/at? Intrinsic value is... In. IV=5 ($500)
Short RST Jan 65 call @ 7, CMV is 70 In/out/at? Intrinsic value is... In IV= 5 ($500)
Long RST Jan 65 put @ 2, CMV is 70 In/out/at? Intrinsic value is.... Out. IV=0
Short RST Jan 65 put @ 2, CMV is 70 In/out/at? Intrinsic value is.... Out IV=0
Short RST Sep 45 put @ 8, CMV=39 In/out/at? Intrinsic value is.... In IV=6 ($600)
Call is @ 40, CMV= 38 In/out/at? By how much? Out. By $2
Put is @ 40, CMV = 44 In/out/at? By how much? Out. By $4
Long 1 RST May 60 call @ 3.50 Max gain? Max loss? Break even? Max gain = unlimited Max loss = premium ($350) Break even = XP+premium ($63.50) BULL
Short 1 RST Dec 45 call @ 3 Max gain? Max loss? Break even? Max gain = premium ($300) Max loss = unlimited Break even = XP + premium ($4200 + $300) BEAR
Long 1RST Jan 50 put @ 2 Max gain? Max loss? Break even? Max gain = XP-prem to 0 ($52) Max loss = premium ($200) Break even = XP-premium ($50) BEAR
Short 1 RST Feb 30 put @ 4.50 Max gain? Max loss? Break even? Max gain = premium $450 Max loss = XP-premium to 0 ($25.50) Break even = XP-premium ($25.50) BULL
Long 100 SHARES of RST @ 53 (CMV) Long 1 RST 50 put @ 2 Max gain? Max loss? Break even? Protective Put Hedge Max gain = unlimited Max loss = $500 ($300 share price loss [CMV-XP]+ $200 premium) Break even = $55 CMV BULL
Long 100 SHARES of RST @ 53 (CMV) Short 1 RST 55 call @ 2 Max gain? Max loss? Break even? Covered Call Hedge Max gain = $400 (XP-CMV+premium) Max loss = $5,100 (stock value $0) Break even = $51 (CMV-premium) NEUTRAL/BULL
Short 100 SHARES RST @ 58 Long 1 RST 60 call @ 3 Max gain? Max loss? Break even? Max gain = $5,500 (CMV-premium) Max loss = $500 (XP-CMV+premium) Break even = $55 (CMV-premium) BEAR
Short 100 SHARES RST @ 55 Short 1 RST 55 put @ 2.5 Max gain? Max loss? Break even? Covered Put Hedge Max gain = $250 (premium) Max loss = unlimited Break even = $57.50 NEUTRAL/BEAR
Long 1 RST Nov 55 call @ 6 Short 1 RST Nov 60 call @ 3 Max gain? Max loss? Break even? Vertical/price Debit call spread Max gain = diff in XPs-net dr pd ($200) Max loss = net dr pd $300 Break even = lower XP+net dr pd ($58) BULL
Long 1 RST Nov 55 call @ 2 Short 1 RST Nov 45 call @ 9 Max gain? Max loss? Break even? Vertical/price credit call spread Max gain = net premium ($700) Max loss = diff in XPs-net premium ($300) Break even = lower XP + net premium ($52) BEAR
Long 1 RST Nov 55 put @ 6 Short 1 RST Nov 50 put @ 3 Max gain? Max loss? Break even? Vertical/price debit put spread Max gain = diff in XP-net dr pd ($200) Max loss = net premium ($300) Break even = higher XP-net premium ($52) BEAR
Long 1 RST Nov 55 put @ 2 Short 1 RST Nov 65 call @ 9 Max gain? Max loss? Break even? Vertical/price credit put spread Max gain = net premium ($700) Max loss = diff in XPs-net premium ($300) Break even = higher XP-net premium ($58) BULL
Spread max gain/max loss Max gain + max loss = XP difference
Call spread breakeven Call Add (net premium) to Lower XP
Put spread breakeven Put Subtract (net premium) from Higher XP
Foreign currency options are traded in blocks of: (except for Yen) 10000
Yen option contract size 1,000,000
Currency options are quoted in_____ per unit Cents
Yen options are quoted in_____ per unit 1/100’s of a cent
Swiss Franc contract quoted w/ premium of 1.5 - How many units? Premium cost? Units 10,000 Cost $150 10,000 x .015
Long 1 Jan 50 call Short 1 Jan 55 call DR/CR Spread? Bull/Bear/ Neutral? DR call Spread Bull
Long 1 Jan 50 put Short 1 Jan 45 put DR/CR Spread? Bull/Bear/ Neutral? DR put Spread Bear
Short 1 Jan 50 call Long 1 Jan 55 call DR/CR Spread? Bull/Bear/ Neutral? CR call spread Bear
Short 1 Jan 50 put Long 1 Jan 45 put DR/CR Spread? Bull/Bear/ Neutral? CR put spread Bull
Lower XP is more valuable in a _______ spread. Call Debit call if purchased BULLISH Credit call if sold BEARISH
Higher XP is more valuable in a _______ spread. Put Debit put if if purchased BEARISH Credit put if sold BULLISH
Breakeven point on call spreads ADD net premium to LOWER XP
Breakeven point on put spreads SUBTRACT net premium from HIGHER XP
Calls are in the $ when the market price is _______ the XP Above (CALL UP)
Puts are in the $ when the market price is _______ the XP Below (PUT DOWN)
In any spread, if you are BUYING the LOWER XP you are a: (Bull or Bear)? Bull
Created by: Lizherman
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