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— involve combining options on the same underlying and of same type (call/ put) but with different strikes and maturities.
—-are created by using options having same expiry but different strike prices.
A trader has a bullish view on underlying and wants to create a bullish vertical spread which of the following he can do:
The trader has bullish view, would like to short a put option. If prices go up, trader would end up with the premium on sold puts. However, in case prices go down, the trader would be facing risk of unlimited losses. In order to put a floor to his downside, he may—
In a bearish vertical spread using call the trader starts with:
— involves same strike, same type but different expiry options.
—- involves combination of options having same underlying but different expiries as well as different strikes.
— involves two options of same strike prices and same maturity
If a person buys a call and a put at same strike price and same maturity it is known as —
In case of long straddle strategy maximum loss will be equal to —
If the , trader’s view on price of the underlying is uncertain but he thinks that the price of underlying would not move much or remain stable.
If a person sells a call and a put at same strike price and same maturity it is known as —
If a person sells a call and a put at same strike price and same maturity it is known as —
Short straddle is a — strategy.
— involves two options of different strike prices and same maturity
Long strangle is a — strategy.
Covered call strategy involves:
A collar can be created:
Butterfly spread Is a extension of — strategy.
In butterfly strategy to put a limit on unlimited loss trader along with short straddle can:
Synthetic short put can be created by:
A protective put can be created by:
A synthetic long call can be created:
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