Category: SYLLABUS
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Bear Put Spread Strategy
Bear Put Spread A bear put spread consists of buying one put and selling another put, at a lower strike,…
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Cash-Backed Call (Cash-Secured Call)
Cash-Backed Call (Cash-Secured Call) This strategy allows an investor to purchase stock at the lower of strike price or market…
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Cash-Secured Put
Cash-Secured Put The cash-secured put involves writing a put option and simultaneously setting aside the cash to buy the stock…
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Collar (Protective Collar)
Collar (Protective Collar) The investor adds a collar to an existing long stock position as a temporary, slightly less-than-complete hedge…
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Covered Call (Buy/Write)
Covered Call (Buy/Write) This strategy consists of writing a call that is covered by an equivalent long stock position. Description…
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Covered Put
Covered Put This strategy is used to arbitrage a put that is overvalued because of its early-exercise feature. Description The…
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Covered Ratio Spread
Covered Ratio Spread This strategy profits if the underlying stock moves up to, but not above, the strike price of…
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Covered Strangle (Covered Combination)
Covered Strangle (Covered Combination) This strategy is appropriate for a stock considered to be fairly valued. Description This strategy consists…
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Double Bull Spread
Double Bull Spread This strategy is the combination of a bull call spread and a bull put spread. Description This…
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Long Call Butterfly
Long Call Butterfly This strategy profits if the underlying stock is at the body of the butterfly at expiration. Description…