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25 Cards in this Set
- Front
- Back
Bull Call & Bear Put Spreads are debit or credit spreads?
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DEBIT
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2 types of Debit spreads?
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BULL CALL
BEAR PUT |
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Bear Call & Bull Put spreads are debit or credit spreads?
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Credit
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2 types of credit spreads?
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BEAR CALL
BULL PUT |
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CALL?
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RIGHT to BUY a stock at a set price for a set period of time
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PUT?
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RIGHT to SELL a stock at a SET price for a SET period of time
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PUT = RIGHT to _______
and CALL = RIGHT to ________ |
SELL (Put)
BUY (Call) |
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Name 2 Strategies BULLISH the STOCK
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BUY CALL
SELL PUT |
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Name 2 Strategies BEARISH the stock
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SELL CALL
BUY PUT |
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BUYING A CALL?
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The RIGHT to BUY a stock @
"set price" on or before "expiration day" |
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SELLING A PUT?
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The OBLIGATION to BUY a stock @
"set price" on or before "expiration day" |
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SELLING A CALL?
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The OBLIGATION to SELL a stock @
"set price" on or before "expiration day" |
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BUYING A PUT?
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The RIGHT to SELL a stock @
"set price" on or before "expiration day" |
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BUYING A CALL...
1. Who pays premium to who? 2. for the right/obligation to buy/sell stock? |
BUYER pays Premium TO SELLER
for RIGHT to BUY THEIR stock |
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SELLING A PUT...
1. Who pays premium to who? 2. for the right/obligation to buy/sell stock? |
SELLER is PAID premium FROM the Buyer for the OBLIGATION to BUY their stock
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SELLING A CALL...
1. Who pays premium to who? 2. for the right/obligation to buy/sell stock? |
SELLER PAID premium FROM Buyer for the OBLIGATION to SELL their stock
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BUYING A PUT...
1. Who pays premium to who? 2. for the right/obligation to buy/sell stock? |
BUYER PAYS premium TO Seller for the RIGHT to SELL THEM their stock
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Time/Extrinsic Value =
_____+/-_____? |
PREMIUM + INTRINSIC VALUE
= Time value |
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Premium =
______+_____? |
INTRINSIC VALUE + TIME "EXTRINSIC" VALUE
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Intrinsic value for a call =
_____+/-_____? |
STOCK PRICE - STRIKE PRICE
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Intrinsic value for a put =
_____+/-_____? |
STRIKE PRICE - STOCK PRICE
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Intrinsic Value @ TP for CALL =
_____+/-_____? |
STOCK TP - STRIKE PRICE
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Intrinsic Value @ TP for PUT =
_____+/-_____? |
STRIKE - STOCK TP
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Intrinsic Value @ STOP for CALL=
_____+/-_____? |
STOCK STOP PRICE - STRIKE
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Intrinsic Value @ STOP for PUT=
_____+/-_____? |
STRIKE - STOCK STOP PRICE
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