Options Flashcards
Draft up the TOP LEFT options quadrant with:
right or obl?
bullish or bearish?
Max Gain:
Max Loss:
Break even:
Hedge or income?
Right 2 buy
Bullish
MG: Unlimited
ML: Premium
B/E: Strike + Premium
Hedge 4 short stock
Draft up the TOP RIGHT options quadrant with:
right or obl?
bullish or bearish?
Max Gain:
Max Loss:
Break even:
Hedge or income?
Obligation 2 sell
Bearish
MG: Premium
ML: Unlimited
B/E: Strike + Premium
Income w/ long stock
Draft up the BOTTOM LEFT options quadrant with:
right or obl?
bullish or bearish?
Max Gain:
Max Loss:
Break even:
Hedge or income?
Right 2 sell
Bearish
MG: Strike - premium
ML: Premium
B/E: Strike - Premium
Hedge 4 long stock
Draft up the BOTTOM RIGHT options quadrant with:
right or obl?
bullish or bearish?
Max Gain:
Max Loss:
Break even:
Hedge or income?
Obligation 2 buy
Bullish
MG: Premium
ML: Strike - Premium
B/E: Strike - Premium
Income w/ short stock
Define the straddles
Long straddle (volatility)
Short straddle (flat/neutral)
Define the spreads
Call spread
Put spread
Define Debit/Credit in relation to options
Debit: widen/ exercise
Credit: narrow/ expire