Options Flashcards

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1
Q

Draft up the TOP LEFT options quadrant with:
right or obl?
bullish or bearish?
Max Gain:
Max Loss:
Break even:
Hedge or income?

A

Right 2 buy
Bullish
MG: Unlimited
ML: Premium
B/E: Strike + Premium
Hedge 4 short stock

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2
Q

Draft up the TOP RIGHT options quadrant with:
right or obl?
bullish or bearish?
Max Gain:
Max Loss:
Break even:
Hedge or income?

A

Obligation 2 sell
Bearish
MG: Premium
ML: Unlimited
B/E: Strike + Premium
Income w/ long stock

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3
Q

Draft up the BOTTOM LEFT options quadrant with:
right or obl?
bullish or bearish?
Max Gain:
Max Loss:
Break even:
Hedge or income?

A

Right 2 sell
Bearish
MG: Strike - premium
ML: Premium
B/E: Strike - Premium
Hedge 4 long stock

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4
Q

Draft up the BOTTOM RIGHT options quadrant with:
right or obl?
bullish or bearish?
Max Gain:
Max Loss:
Break even:
Hedge or income?

A

Obligation 2 buy

Bullish
MG: Premium
ML: Strike - Premium
B/E: Strike - Premium
Income w/ short stock

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5
Q

Define the straddles

A

Long straddle (volatility)
Short straddle (flat/neutral)

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6
Q

Define the spreads

A

Call spread
Put spread

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7
Q

Define Debit/Credit in relation to options

A

Debit: widen/ exercise
Credit: narrow/ expire

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