Option Strategies Flashcards by trey abc | Brainscape

Q

What are the basics of a LONG CALL strategy?

A

Max potential gain = unlimited
Max potential loss = premium paid
Breakeven = Strike price + premium

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What are the basics of a SHORT CALL strategy?

A

Max potential gain = premium received
Max potential loss = unlimited
Breakeven = strike price + premium

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What are the basics of a LONG PUT strategy?

A

max potential gain = strike price - premium
max potential loss = premium paid
breakeven = strike price - premium

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What are the basics of a SHORT PUT strategy?

A

maximum potential gain = premium received
max potential loss = strike price - premium
breakeven = strike price - premium

How well did you know this?

1

Not at all

2

3

4

5

Perfectly