Options Flashcards by Brittany Patrick | Brainscape

Q

Long Stock, Long Put

Maximum gain

A

Unlimited

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Q

Long Stock, Long Put

Breakeven

A

Stock price + Premium

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Q

Long Stock, Long Put

Maximum loss

A

Breakeven - Strike Price

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Q

Long Stock, Short Call

Maximum Gain

A

Strike Price - Breakeven

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Q

Long Stock, Short Call

Breakeven

A

Purchase price of the stock - Premium

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Q

Long Stock, Short Call

Maximum loss

A

Breakeven

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Q

Short Stock, Long Call

Maximum gain

A

Breakeven

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Q

Short Stock, Long Call

Breakeven

A

Stock Price - Premium

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Q

Short Stock, Long Call

Maximum loss

A

Strike Price - Breakeven

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Q

Short Stock, Short Put

Maximum Gain

A

Breakeven - Strike Price

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Q

Short Stock, Short Put

Breakeven

A

Stock Price + Premium

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Q

Short Stock, Short Put

Maximum loss

A

Unlimited

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Q

Price/Vertical Spread

A

Different strike prices, same expiration

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Q

Time/Calendar/Horizontal Spread

A

Same strike prices, different expiration

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Q

Diagonal Spread

A

Different strike prices, different expirations

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Q

Debit Call Spread

A

Long has higher premium

Q

Credit Call Spread

A

Short has the higher premium

Q

Debit Put Spread

A

Reduce the cost of a long position

Q

Credit Put Spread

A

Reduce the risk of a short put option

Q

Call Spreads - Breakeven

A

CAL

Call spread = net premium + lower strike price

Q

Put Spreads - Breakeven

A

PSH

Put Spread = Higher strike price - net premium

Q

Call Spread Attitude - Bullish

A

Purchase the lower strike price = debit

Q

Call Spread Attitude - Bearish

A

Sell the lower strike price = credit

Q

Put Spread Attitude - Bearish

A

Purchase the higher strike price = debit

Q

Put Spread Attitude - Bullish

A

Sell the higher strike price = credit