Options

Question 1

Buying a call and buying a put

Answer 1

Long straddle

Question 2

Both expiration and strike is different

Answer 2

Diagonal spreed

Question 3

Short straddle maximum loss and maximum gain

Answer 3

Maximum gain is both premiums maximum loss is unlimited

Question 3

Is a credit call spread bullish or bearish?

Answer 3

Bearish

Question 4

What direction does a debit spreed want the market to move?

Answer 4

Widen

Question 5

Diagonal spreed

Answer 5

Strike prices and/or the expiration months are different

Question 6

Put down rule

Answer 6

Find break even by Subtracting the net premium from the higher strike price.

Question 7

The market attitude of a credit call spread is

Answer 7

Bearish

Question 8

Long put formula

Answer 8

Maximum gain = strike price - premium x 100
Maximum loss= premium paid
Breakeven = strike price - premium

Question 9

Short put formula

Answer 9

Maximum gain = premium
Maximum loss = strike price - premium x 100
Breakeven = strike price - premium

Question 10

Credit put spread formula

Answer 10

Max gain = net premium
Max loss = dsp - net premium
Breakeven higher strike price - net premium

Question 11

selling a call and selling a put

Answer 11

Short straddle

Question 12

Is a debit put spreed bearish or bullish?

Answer 12

Bearish

Question 13

Only expirations are different

Answer 13

Calendar spreed

Question 14

Short call formulas

Answer 14

Maximum gain = premium
Max loss = unlimited
Breakeven = strike price + premium

Question 15

Investor buys an option with a higher premium and simultaneously sells an option with a lower premium

Answer 15

Debit call spread

Question 16

Credit call spread maximum loss, maximum gain and breakeven

Answer 16

Maximum loss = difference in strike price - net premium
Maximum gain = net premium received
Breakeven = lower strike price + net premium

Question 17

When referring to us companies exporter buy?

Answer 17

Puts

Question 18

What direction does a credit spreed want the market to move?

Answer 18

Narrow

Question 19

When referring to non us companies exporters buy?

Answer 19

Calls

Question 19

Investor paid more than he received

Answer 19

Debit spread

Question 19

Long call formula

Answer 19

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

Question 22

Debit put spread formulas

Answer 22

Maximum gain = dsp- net premium
Max loss = net profit
Breakeven = higher strike price - net premium

Question 23

When referring to non us companies importers buy?

Answer 23

Puts

Question 26

Investor received more than he paid

Answer 26

Credit spread

Question 27

The market attitude of a short straddle

Answer 27

Neutral or flat

Question 28

When referring to us companies importers buy?

Answer 28

Calls

Question 30

Long combination

Answer 30

A long call and a long put with different terms

Question 33

Is a debit call spread bull or bearish?

Answer 33

Bull

Question 35

Buys and sells calls or puts. With different expiration, strike prices or both.

Answer 35

Spread

Question 36

Debit spread maximum loss? Maximum gain? Break even?

Answer 36

Maximum loss = net premium paid Maximum gain = difference in strike prices - net premium Breakeven = lower strike price + net premium

Question 37

Is a credit put spread bearish or bullish?

Answer 37

Bullish

Question 39

Buying a put and selling a put

Answer 39

Put spread

Question 46

Long straddle maximum gain, maximum loss

Answer 46

Max gain is unlimited maximum loss is both premiums

Question 47

Combination straddle

Answer 47

Same stock but different expiration dates or strike prices

Question 50

Only strike prices are different

Answer 50

Vertical spread

Question 52

Break even of a straddle

Answer 52

Add the two premiums. Add the total of the premiums to strike price for the call side and subtract the premiums from the contract on the put side.

Question 58

Buying a call and selling a call

Answer 58

Call spread