Options Strategies

What is the premium and exercise rate for a straddle writer?

The same

What is the premium and exercise rate for a strangle buyer?

Both are different

what is the premium and exercise rate for a strangle writer?

Both are different

Describe Profit and loss of straddle writer:

Limited Profit and unlimited Loss

Describe Profit and loss of Strangle Buyer

unlimited profit and Limited Loss

Describe Profit and loss of strangle writer

Limited profit and unlimited loss

What two option strategies does a straddle writer combine?

Writer of a put and writer of a call

What two option strategies does a strangle buyer combine?

buyer of a put and buyer of a call

What two option strategies does a strangle writer combine?

Writer of a put and writer of a call

What shape is a strangle writer graph?

Upside down trapezoid

What shape is a straddle writer graph?

Upside down triangle

What shape is a strangle buyer graph?

Right side up trapezoid

What is the expectation of the market of a straddle writer?

Stability

What is the expectation of the market of a strangle buyer?

Volatility

What is the expectation of the market of a strangle writer?

Stability

What two option strategies are used in a covered call?

Buyer of a call and buyer of a put

What two option strategies are used in a synthetic long position?

buyer of a call and writer of a put

What two option strategies are used in a synthetic short position?

writer of a call and buyer of a put

What two option strategies are used in a straddle buyer?

Buyer of a call and buyer of a put

What is the premium and exercise rate for a straddle buyer?

The same

Describe the profit and loss of a straddle buyer

unlimited profit and limited loss

What is the shape of a straddle writer graph

upside down triangle

Describe the shape of a covered call

Candy wrapper

Describe the shape of a synthetic long position

Diving board that breaks off at different heights

Describe the shape of a synthetic short position

Slide that has two paths

Why would you invest in a covered call?

When you are sure that the spot rate will go up

Why would you invest in a synthetic long position?

When you are incredibly sure that the spot rate is going to go up

Why would you invest in a synthetic short position

Only when you are incredibly sure that the spot rate will go down

Describe profit and loss for a covered call

no profit or loss

Describe the shape of a straddle buyer graph

right side up triangle