Covered Call Flashcards
1
Q
Using the _____ ____ proactively can take our risk/cost basis to zero over time.
A
Short Call
2
Q
The Covered Call is a key component of the ______ _____
A
Collar Trade
3
Q
_____ ____ optimizes a stagnant to bearish trend
A
Short Call
4
Q
_____ ____ optimizes a bullish, stagnant or slightly bearish trend
A
Covered Call
5
Q
____ __ ____ Short Call for a credit
A
Sell to Open (STO)
6
Q
Short Call _________ us to sell a stock at a fixed price within a set timeframe.
A
obligates
7
Q
____ is covered by the stock ownership.
A
Risk
8
Q
For Covered Call, Short Call is placed ___ or ___
A
ATM OTM
9
Q
Covered Call Net Cost Basis: ______ _____ - Short Call premium(s)
A
Equity price
10
Q
Covered Call Max Potential Reward:
A
Short Call strike price - cost basis
