Level 2 Test

Question 1

Short Put = Look for levels of _______

Answer 1

Support

Question 2

Long Call = ___ __ ____ with the expectation that the stock will ________.

Answer 2

Buy to open increase

Question 3

Long Put = _______ trend

Answer 3

Bearish

Question 4

Short options are ______ trades.

Answer 4

credit

Question 5

Short Call = You have the __________ to ____ the underlying equity if assigned.

Answer 5

obligation sell

Question 6

Intrinsic Value = ______ value.

Answer 6

Actual

Question 7

Sell to Open (STO) Short Call if underlying equity trend is expected to be _______ or _________.

Answer 7

bearish stagnant

Question 8

Value at which you pay for an option = ___ _____

Answer 8

ask price

Question 9

Options expiration occurs on ________ following the _____ Friday.

Answer 9

Saturday third

Question 10

Short Call = _______ trend.

Answer 10

Bearish

Question 11

Short Put = ________ to _______ trend

Answer 11

stagnant bullish

Question 12

Theta = ____ _____

Answer 12

Time Decay

Question 13

Long options = _____ trades

Answer 13

Debit

Question 14

Short Put = __________ to ___ a stock if assigned.

Answer 14

Obligation buy

Question 15

At the money (ATM) options have the _______ _________ value.

Answer 15

highest extrinsic

Question 16

Vega is the amount by which an options value will change based on a 1% change in the _______ __________ of the option.

Answer 16

implied volatility

Question 17

Long Call = ___ _____ and obtain _____ to buy stock

Answer 17

Pay debit right

Question 18

Short Call = Look for levels of __________.

Answer 18

resistance