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Study sets matching "option spreads"

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Study sets matching "option spreads"

19 terms
Option Spreads
If you figure out that an Option contr…
How do you tell if two options contrac…
An option Spread done at a NET DEBIT S…
An option Spread done at a NET CREDIT…
If you PAID more for the total teo contract, than you PAID fo…
1) have to be putting on a LONG and a SHORT at the same time.…
Must be closed or offset to be profitable. PREMIUMS TO GET BE…
This type of option, the client wants to Generally expected t…
If you figure out that an Option contr…
If you PAID more for the total teo contract, than you PAID fo…
How do you tell if two options contrac…
1) have to be putting on a LONG and a SHORT at the same time.…
22 terms
Option Spreads
spreads
Call spread
Put spread
bull spread
1. long/buy and a short/sell position at the same time... 2. sam…
1. buy a call... 2. sell a call
1. buy a put... 2. sell a put
1. investor thinks there will be a rise in market price... 2. pr…
spreads
1. long/buy and a short/sell position at the same time... 2. sam…
Call spread
1. buy a call... 2. sell a call
22 terms
Option Spreads
Bear Call Spread (Credit Spread)
Bear Put Spread
Bull Call Spread (Debit Spread)
Bull Put Spread
Buy a call and sell a call. The long call has a higher exerci…
Buy a put and sell a put. The long put has a higher exercise…
Buy a call and sell a call. The long call has a lower exercis…
Buy a put and sell a put. The long put has a lower exercise p…
Bear Call Spread (Credit Spread)
Buy a call and sell a call. The long call has a higher exerci…
Bear Put Spread
Buy a put and sell a put. The long put has a higher exercise…
15 terms
Options - Spreads
spread
call spread
put spread
vertical spread
the simultaneous purchase of one option and sale of another o…
long call and a short call
long put and a short put
Same expiration month ,different strike prices / most common…
spread
the simultaneous purchase of one option and sale of another o…
call spread
long call and a short call
15 terms
Options - Spreads
spread
call spread
put spread
vertical spread
the simultaneous purchase of one option and sale of another o…
long call and a short call
long put and a short put
Same expiration month ,different strike prices / most common…
spread
the simultaneous purchase of one option and sale of another o…
call spread
long call and a short call
11 terms
options/spreads
floor
cap
covered call
covered put
long index, short put
short index, long call
long index, short call
short index, short put
floor
long index, short put
cap
short index, long call
37 terms
Options - Spreads
Purchase and sale of a call, or the pu…
Advantage of a spread position
Price (vertical) spreads
Long call spread
Spread position
Limits potential risk (at the expensive of limiting potential…
Hedge in which the strike prices are different
Bull spread; one buys the lower strike price (which has a hig…
Purchase and sale of a call, or the pu…
Spread position
Advantage of a spread position
Limits potential risk (at the expensive of limiting potential…
17 terms
Bearish Option Spreads
Bear Call Spread
Bear Put Spread
Choosing Between the Bear Call and Bea…
Box Spread
Buy 1 OTM Call... Sell 1 ITM Call... *expiring in the same month... L…
Buy 1 ITM Put... Sell OTM Put... Max Profit= Strike Price of Long…
1. Use the Bear Call Spread when IV is high and the Bear Put…
Buy 1 ITM Call... Sell 1 OTM Call... Buy 1 ITM Put... Sell 1 OTM Put
Bear Call Spread
Buy 1 OTM Call... Sell 1 ITM Call... *expiring in the same month... L…
Bear Put Spread
Buy 1 ITM Put... Sell OTM Put... Max Profit= Strike Price of Long…
12 terms
Option Lesson 22 - Basic Put Spreads
Put Calendar Spread
Put Bear Spread
Put Bull Spread
Compared to a call bear spread, a put…
Sell a near-term option and buy a longer-term option, both at…
Sell a put with a lower strike price, buy a put with a higher…
Buy a put with a lower strike price, sell a put with a higher…
Same profit potential
Put Calendar Spread
Sell a near-term option and buy a longer-term option, both at…
Put Bear Spread
Sell a put with a lower strike price, buy a put with a higher…
14 terms
Series 7 - Options (spreads)
What is a debit call spread?
What is a credit call spread?
What is a debit put spread?
What is a credit put spread?
Debit call spreads are used by investors to reduce the cost o…
Credit call spreads are created by investors to reduce the ri…
Debit put spreads are used by investors to reduce the cost of…
Credit put spreads are created by investors to reduce the ris…
What is a debit call spread?
Debit call spreads are used by investors to reduce the cost o…
What is a credit call spread?
Credit call spreads are created by investors to reduce the ri…
11 terms
Options Lesson 9 - Calendar Spreads
Neutral Calendar Spread
Bullish Calendar Spread
Antivolatility Strategy
Time Spread
Calendar spread established when the underlying price is at o…
Calendar Spread established when the underlying price is far…
Buying a calendar spread
Calendar Spread
Neutral Calendar Spread
Calendar spread established when the underlying price is at o…
Bullish Calendar Spread
Calendar Spread established when the underlying price is far…
8 terms
Options Lesson 13 - Reverse Spreads
Reverse Calendar Spreads
Backspread
It is best to use a reverse calendar s…
In a Backspread
Infrequently used because of the margin requirements involved
Reverse Ratio Call Spread
Using a stock that is volatile
You can sell a call at one strike price and buy several calls…
Reverse Calendar Spreads
Infrequently used because of the margin requirements involved
Backspread
Reverse Ratio Call Spread
13 terms
Option Lesson 24 - Ratio Spreads Using Puts
Ratio Put Spread
Delta Spread
Ratio Put Calendar Spread
Ratio Calendar Combination
Buy puts at one strike price and sell more puts at a lower st…
Used to establish and adjust neutral ratio put spreads
Buy a longer-term put and sell a larger size of shorter-term…
Buy longer-term OTM combination and sell near-term OTM combin…
Ratio Put Spread
Buy puts at one strike price and sell more puts at a lower st…
Delta Spread
Used to establish and adjust neutral ratio put spreads
17 terms
Option Lesson 23 - Spreads Combining Calls and Puts
A butterfly spread can be constructed in
A butterfly spread is the equivalent o…
A calendar straddle is a
A dual calendar spread is best constru…
4 ways with the same expiration
Protected straddle write
Neutral strategy
Relatively volatile stock and when the strike prices of the o…
A butterfly spread can be constructed in
4 ways with the same expiration
A butterfly spread is the equivalent o…
Protected straddle write
12 terms
Options Lesson 10 - The Butterfly Spread
Butterfly Spread
Smallest-Debit Butterfly Spread
Net Investment
Upside Break-Even
Neutral position combining a bull and a bear spread
Butterfly spread in which the stock is some distance away fro…
Net debit of butterfly spread
Highest strike - net debit
Butterfly Spread
Neutral position combining a bull and a bear spread
Smallest-Debit Butterfly Spread
Butterfly spread in which the stock is some distance away fro…
22 terms
Bull Spreads Using Call Options
Least Aggressive Bull Spread
Aggressive Bull Spread
Most Aggressive Bull Spread
Call Bull Spread
Both Calls are ITM
Stock is well below the higher strike price
Both Calls are OTM
Debit transaction
Least Aggressive Bull Spread
Both Calls are ITM
Aggressive Bull Spread
Stock is well below the higher strike price
11 terms
Options Lesson 9 - Calendar Spreads
Neutral Calendar Spread
Bullish Calendar Spread
Antivolatility Strategy
Time Spread
Calendar spread established when the underlying price is at o…
Calendar Spread established when the underlying price is far…
Buying a calendar spread
Calendar Spread
Neutral Calendar Spread
Calendar spread established when the underlying price is at o…
Bullish Calendar Spread
Calendar Spread established when the underlying price is far…
8 terms
Options Lesson 13 - Reverse Spreads
Reverse Calendar Spreads
Backspread
It is best to use a reverse calendar s…
In a Backspread
Infrequently used because of the margin requirements involved
Reverse Ratio Call Spread
Using a stock that is volatile
You can sell a call at one strike price and buy several calls…
Reverse Calendar Spreads
Infrequently used because of the margin requirements involved
Backspread
Reverse Ratio Call Spread
10 terms
Options Lesson 11 - Ratio Call Spreads
Ratio Call Spread
Delta Spread
Ratio
Maximum profit at expiration for a rat…
Buy calls at one price, sell more calls at a higher strike
Deltas are used to set up and monitor the spread
Number of calls bought versus number of calls sold
Stock is exactly at the strike price of the written options
Ratio Call Spread
Buy calls at one price, sell more calls at a higher strike
Delta Spread
Deltas are used to set up and monitor the spread
12 terms
Option Lesson 22 - Basic Put Spreads
Put Calendar Spread
Put Bear Spread
Put Bull Spread
Compared to a call bear spread, a put…
Sell a near-term option and buy a longer-term option, both at…
Sell a put with a lower strike price, buy a put with a higher…
Buy a put with a lower strike price, sell a put with a higher…
Same profit potential
Put Calendar Spread
Sell a near-term option and buy a longer-term option, both at…
Put Bear Spread
Sell a put with a lower strike price, buy a put with a higher…
12 terms
Options Lesson 10 - The Butterfly Spread
Butterfly Spread
Smallest-Debit Butterfly Spread
Net Investment
Upside Break-Even
Neutral position combining a bull and a bear spread
Butterfly spread in which the stock is some distance away fro…
Net debit of butterfly spread
Highest strike - net debit
Butterfly Spread
Neutral position combining a bull and a bear spread
Smallest-Debit Butterfly Spread
Butterfly spread in which the stock is some distance away fro…
11 terms
Options Lesson 8 - Bear Spreads Using Call Options
Call Bear Spread
Maximum Profit Potential
Break-Even Point
A Bear Spread is profitable
Buy a call at one strike price and sell another a lower strik…
In a call bear spread, the net credit received
In a call bear spread, lower strike price plus credit
When the underlying stock declines in price
Call Bear Spread
Buy a call at one strike price and sell another a lower strik…
Maximum Profit Potential
In a call bear spread, the net credit received
14 terms
Options Lesson 12 - Combining Calendar and Ratio Spreads
Ratio Calendar Spread
ITM Calendar Spread
Delta-Neutral Calendar Spread
The collateral requirements for a rati…
Sell near-term calls, buy fewer intermediate- or long-term ca…
Divide the delta of the long call by the delta of the short c…
The shorter-term call has a higher delta than the longer-term…
Margin required for naked calls - credit taken in
Ratio Calendar Spread
Sell near-term calls, buy fewer intermediate- or long-term ca…
ITM Calendar Spread
Divide the delta of the long call by the delta of the short c…
13 terms
Option Lesson 24 - Ratio Spreads Using Puts
Ratio Put Spread
Delta Spread
Ratio Put Calendar Spread
Ratio Calendar Combination
Buy puts at one strike price and sell more puts at a lower st…
Used to establish and adjust neutral ratio put spreads
Buy a longer-term put and sell a larger size of shorter-term…
Buy longer-term OTM combination and sell near-term OTM combin…
Ratio Put Spread
Buy puts at one strike price and sell more puts at a lower st…
Delta Spread
Used to establish and adjust neutral ratio put spreads
22 terms
Options Lesson 7 - Bull Spreads Using Call Options
Least Aggressive Bull Spread
Aggressive Bull Spread
Most Aggressive Bull Spread
Call Bull Spread
Both Calls are ITM
Stock is well below the higher strike price
Both Calls are OTM
Debit transaction
Least Aggressive Bull Spread
Both Calls are ITM
Aggressive Bull Spread
Stock is well below the higher strike price
7 terms
Option Lesson 14 - Diagonalizing a Spread
Diagonal Backspread
Diagonal Bear Spread
Diagonal Bull Spread
Diagonal Spread
Buy more than one longer-term call against the short-term cal…
Sell a call with a lower strike price and nearer expiration,…
Buy a longer-term call at a lower strike price, sell a near-t…
Different strike prices, different expiration dates
Diagonal Backspread
Buy more than one longer-term call against the short-term cal…
Diagonal Bear Spread
Sell a call with a lower strike price and nearer expiration,…
17 terms
Option Lesson 23 - Spreads Combining Calls and Puts
A butterfly spread can be constructed in
A butterfly spread is the equivalent o…
A calendar straddle is a
A dual calendar spread is best constru…
4 ways with the same expiration
Protected straddle write
Neutral strategy
Relatively volatile stock and when the strike prices of the o…
A butterfly spread can be constructed in
4 ways with the same expiration
A butterfly spread is the equivalent o…
Protected straddle write
10 terms
Options Lesson 11 - Ratio Call Spreads
Ratio Call Spread
Delta Spread
Ratio
Maximum profit at expiration for a rat…
Buy calls at one price, sell more calls at a higher strike
Deltas are used to set up and monitor the spread
Number of calls bought versus number of calls sold
Stock is exactly at the strike price of the written options
Ratio Call Spread
Buy calls at one price, sell more calls at a higher strike
Delta Spread
Deltas are used to set up and monitor the spread
22 terms
Options Lesson 7 - Bull Spreads Using Call Options
Least Aggressive Bull Spread
Aggressive Bull Spread
Most Aggressive Bull Spread
Call Bull Spread
Both Calls are ITM
Stock is well below the higher strike price
Both Calls are OTM
Debit transaction
Least Aggressive Bull Spread
Both Calls are ITM
Aggressive Bull Spread
Stock is well below the higher strike price
14 terms
Options Lesson 12 - Combining Calendar and Ratio Spreads
Ratio Calendar Spread
ITM Calendar Spread
Delta-Neutral Calendar Spread
The collateral requirements for a rati…
Sell near-term calls, buy fewer intermediate- or long-term ca…
Divide the delta of the long call by the delta of the short c…
The shorter-term call has a higher delta than the longer-term…
Margin required for naked calls - credit taken in
Ratio Calendar Spread
Sell near-term calls, buy fewer intermediate- or long-term ca…
ITM Calendar Spread
Divide the delta of the long call by the delta of the short c…
11 terms
Options Lesson 8 - Bear Spreads Using Call Options
Call Bear Spread
Maximum Profit Potential
Break-Even Point
A Bear Spread is profitable
Buy a call at one strike price and sell another a lower strik…
In a call bear spread, the net credit received
In a call bear spread, lower strike price plus credit
When the underlying stock declines in price
Call Bear Spread
Buy a call at one strike price and sell another a lower strik…
Maximum Profit Potential
In a call bear spread, the net credit received
19 terms
Series 7 Options: Spreads, Ratio Writing
What is a spread position?
Hedges where the strike prices are dif…
A "long" call spread is
A long call spread's net will be debit…
Purchase and sale of a call/put at different strike prices, e…
price, vertical
where the long call premium is higher than the short call pre…
debit (long=buyer)
What is a spread position?
Purchase and sale of a call/put at different strike prices, e…
Hedges where the strike prices are dif…
price, vertical
17 terms
CHAPTER4 OPTIONS CREDIT SPREAD/COMBINATIONS
To make a debit spread to credit sprea…
max gain in a credit spread jan 50 cal…
max loss in credit spread jan 50 call…
Credit Spread Investors wants differen…
switch from buy to sell ... so investor sells the jan 50 call @…
difference in premium 5-3=2... answer 2
take difference in strike price - difference in premium ... 60-5…
Narrow ,expire ... remember skinny man will die
To make a debit spread to credit sprea…
switch from buy to sell ... so investor sells the jan 50 call @…
max gain in a credit spread jan 50 cal…
difference in premium 5-3=2... answer 2
11 terms
Option Lesson 25 - Long-Term Option Strategies
LEAPS
The 4 specifications that describe an…
The 6 factors that influence the price…
The delta of an option is
A listed call or put option that has 2 or more years of time…
Underlying stock symbol, expiration date, strike price, type…
Underlying stock price, strike price, time remaining, volatil…
The amount by which the option price will change if hte under…
LEAPS
A listed call or put option that has 2 or more years of time…
The 4 specifications that describe an…
Underlying stock symbol, expiration date, strike price, type…
15 terms
Option Lesson 16 - Put Option Buying
Liquidate
Do nothing
Roll down
Spread
Sell a long put for a profit and do not reinvest
Continue to hold a long put
Sell a long put, pocket the initial investment, and invest th…
Sell an OTM put against a put already held
Liquidate
Sell a long put for a profit and do not reinvest
Do nothing
Continue to hold a long put
20 terms
D-Sadlier-Oxford Vocabulary Workshop Level E Unit 4, Option II
affiliated
ascertain
attainment
bequeath
(adj., part.) associated, connected... Syn.: attached, relate…
(verb) to find out... Syn.: discover, determine, establish
(noun) an accomplishment, the act of achieving... Syn.: achieve…
(verb) to give or pass on as an inheritance... Syn.: transmit,…
affiliated
(adj., part.) associated, connected... Syn.: attached, relate…
ascertain
(verb) to find out... Syn.: discover, determine, establish
20 terms
Option Lesson 3 - Call Buying
Strike Price of the Call
Volatility of the stock
Lowering the break even point for a po…
Intrinsic Value
The time value premium of a call is highest when stock is in…
Call option ranking for buying purposes are based on
The strategy of rolling down to a bull spread has the effect on
The call option pricing curve depicts the relationship betwee…
Strike Price of the Call
The time value premium of a call is highest when stock is in…
Volatility of the stock
Call option ranking for buying purposes are based on
11 terms
Calendar Spreads
With calender spreads
The goal of calender spreads
Calendar spreads are considered
The maximum gain
You attempt to capture time value on options with different e…
Is to exploit the difference in the rate of time decay betwee…
To be less risky than simply buying a call or a put, but they…
Can only be estimated because you cannot know what the value…
With calender spreads
You attempt to capture time value on options with different e…
The goal of calender spreads
Is to exploit the difference in the rate of time decay betwee…
22 terms
4.1 debit_spreads
Q: What are debit trades?
Q. Expectation of Debit Trades?
Q: What are the 4 debit trades?
Where are bear put and bull call locat…
A: Debit means you pay. You long=buy options to bet for bulli…
A: expect to exercise, not to expire worthless
Bull Call... Bear Put... Put Calendar... Call Calendar
See pic
Q: What are debit trades?
A: Debit means you pay. You long=buy options to bet for bulli…
Q. Expectation of Debit Trades?
A: expect to exercise, not to expire worthless
12 terms
Series 57 Exam (Option Strategies)
If an investor is: Bullish
If an investor is: Bearish
If an investor is: Long stock and want…
If an investor is: Long stock and want…
Buy a Call (limited risk)... Sell a Put (substantial risk)
Buy a Put (limited risk)... Sell a Call (unlimited risk)
Buy a Put
Sell a Covered Call
If an investor is: Bullish
Buy a Call (limited risk)... Sell a Put (substantial risk)
If an investor is: Bearish
Buy a Put (limited risk)... Sell a Call (unlimited risk)
19 terms
Option B - Vertebrae
Vertebral body
Vertebral arch
Pedicle
Lamina
main portion of the vertebra, separate from the arches of the…
Posterior arch of bone above vertebral body, encloses the spi…
The bony process that projects backward from the body of a ve…
part of the vertebral arch to which the spinous process is at…
Vertebral body
main portion of the vertebra, separate from the arches of the…
Vertebral arch
Posterior arch of bone above vertebral body, encloses the spi…
31 terms
CAE Option 1 Week 5 Vocabulary
calf
shin
disease
illness
the muscle on the back of the lower part of the leg
the front of the lower leg
any condition that interferes with the proper functioning of…
a temporary sickness; a condition of poor health perceived or…
calf
the muscle on the back of the lower part of the leg
shin
the front of the lower leg
Option
Time Premium
Long Call
Short Call
Long Put
the amount of an option's premium that exceeds its intrinsic…
an option contract to buy stock (or another underlying securi…
an option contract that obligates the investor to deliver com…
an option contract that allows the holder to sell common stoc…
Time Premium
the amount of an option's premium that exceeds its intrinsic…
Long Call
an option contract to buy stock (or another underlying securi…
8 terms
Option Lesson 17 - Put Buying in Conjunction with Common Stock Ownership
A long put/long stock strategy is equi…
The purchase of a put in conjunction w…
The strategy of protecting a covered c…
The put is like an insurance policy with
Call purchase
Protective collar/collar
Bull spread
Finite life
A long put/long stock strategy is equi…
Call purchase
The purchase of a put in conjunction w…
Protective collar/collar
16 terms
Spreads
Long a Risky
Short a Risky
Long a Put Spread
Short a Put Spread
Buy a lower strike Put... Sell a higher strike Call
Sell a lower strike Put... Buy a higher strike Call
Sell a lower strike Put... Buy a higher strike Put
Buy lower strike put ... Sell higher strike put
Long a Risky
Buy a lower strike Put... Sell a higher strike Call
Short a Risky
Sell a lower strike Put... Buy a higher strike Call
24 terms
Option
https://quizlet.com/104750208/practice…
Option
Holder or writer/ Long or Short
Call Option
...
A contract entered into between two parties. The buyer of the…
Contract Holder = Contract buyer = Long Position... Contract Wr…
Allows Holder to "call away" the security from the writer and…
https://quizlet.com/104750208/practice…
...
Option
A contract entered into between two parties. The buyer of the…
20 terms
Option Terminology
Option
Long the option
short the option
Breakeven point
a derivative security that is a contract with a value that is…
the buyer owner or holder
writer or seller of the option
the price at which a stock must be trading so than an investo…
Option
a derivative security that is a contract with a value that is…
Long the option
the buyer owner or holder
54 terms
Option D
non essential nutrients
essential nutrients
water soluble vitamins
fat soluble vitamins
nutrients made by the body from other nutrients
nutrients needed from food
vitamins which need to be consumed daily as they are lost in…
vitamins that may be stores (e.g. vitamin D, A, K, E)
non essential nutrients
nutrients made by the body from other nutrients
essential nutrients
nutrients needed from food
11 terms
Option payoff
What is a naked call
What is a covered call
What is spread
What is a money spread
An options strategy in which an investor writes (sells) call…
A covered call is a call an investor sells on a stock he alre…
A combination of two or more call options (or put options) on…
A money spread involves the purchase of one option and the si…
What is a naked call
An options strategy in which an investor writes (sells) call…
What is a covered call
A covered call is a call an investor sells on a stock he alre…
14 terms
3 Strikes Spreads
put
atm put
atm call
call
.5 options... .5 skew
1 option... 0 skew
1 option... 0 skew
.5 options... -.5 skew
put
.5 options... .5 skew
atm put
1 option... 0 skew
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