Spreads

Question 1

Bear Call Spread

Answer 1

Credit Spread

Question 2

Bull Call Spread

Answer 2

Debit Spread

Question 3

Bear Put Spread

Answer 3

Debit Spread

Question 4

Bull Put Spread

Answer 4

Credit Spread

Question 5

Debit Spreads

Answer 5

Bull Call Spread & Bear Put Spread

Question 6

Credit Spreads

Answer 6

Bear Call Spread & Bull Put Spread

Question 7

Answer 7

Short Iron Butterfly

Question 8

Answer 8

Long Iron Butterfly

Question 9

Answer 9

Short Straddle

Question 10

Answer 10

Long Straddle

Question 11

Answer 11

Long Strangle

Question 12

Answer 12

Short Strangle

Question 13

Answer 13

Long Iron Condor

Question 15

Answer 15

Bear Call Credit Spread

or

Bear Put Debit Spread

Question 16

Answer 16

Bull Put Credit Spread

or

Bull Call Debit Spread

Question 17

Answer 17

Covered Call

Question 18

A Collar

Answer 18

Selling a Call OTM (which limits your upside but gives you premium.)

Buying a Put ITM (which limits your losses but costs you money.)

Selling the call limits your upside but makes the put free.

Example Profit/Loss diagram and table: collar

Buy 100 shares XYZ stock at 100.00

Sell 1 XYZ 105 call at 1.80

Buy 1 XYZ 95 put at 1.60

Question 20

Answer 20

Long Calendar Spread