Option Strategies The fundamental of Listed Options What options are What makes up an Option The benefits of Trading options How rights and obligations are involved with options What it means to have a long or short position The core strategies
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Option Strategies The fundamental of Listed Options What options are What makes up an Option The benefits of Trading options How rights and obligations.
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Option Strategies
The fundamental of Listed OptionsWhat options areWhat makes up an OptionThe benefits of Trading optionsHow rights and obligations are involved with optionsWhat it means to have a long or short positionThe core strategies
Long Call• Strategy: Long Stock• Example: Buy Stock at $50.00• Breakeven Point: $50.00• Maximum Risk: $50.00• Profit Potential: Unlimited
Short Call• Strategy: Sell Short Call• Example: Sell Short Strike $50.00 Call at $5.00• Breakeven Point: $50.00• Maximum Risk: Unlimited• Profit Potential: $5.00
Long Straddle• Strategy: Long Call, Long Put• Example: Long Strike $50.00 Call at $5.00 and Put at $5.00• Breakeven Point: $40.00 & $60.00• Maximum Risk: $10.00• Profit Potential: $40.00 or Unlimited
Long Strangle• Strategy: Long Call, Long Put• Example: Long Strike $53.00 Call at $5.00 and Strike $50.00 Put at $5.00• Breakeven Point: $40.00 & $63.00• Maximum Risk: $10.00• Profit Potential: $40.00 or Unlimited
Short Strangle• Strategy: Short Call, Short Put• Example: Sell Short Strike $50.00 Call at $5.00 and Strike $47.00 Put at $5.00• Breakeven Point: $37.00 & $60.00• Maximum Risk: $37.00 or Unlimited• Profit Potential: $10.00
Covered Call• Strategy: Long Stock, Short Call• Example: Buy Stock at $50.00, Sell Short Strike $50.00 Call at $5.00• Breakeven Point: $45.00• Maximum Risk: $45.00• Profit Potential: $5.00
Covered Put• Strategy: Short Stock, Long Put• Example: Sell Short Stock at $50.00, Long Strike $50.00 Call at $5.00• Breakeven Point: $55.00• Maximum Risk: Unlimited• Profit Potential: $5.00