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13 Cards in this Set
- Front
- Back
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Long Call Strategy
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Holder Gains When Market Rises
Long Call: Bullish Direction Max Gain = Unlimited Max Loss = Premium Paid BE = Strike $ + Premium Paid |
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Short Call Strategy
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Writer Gains When Market Falls
Short Naked Call: Bearish Mkt Dir. Max Gain = Premium Received Max Loss = Unlimited BE = Strike $ + Premium Paid |
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Long Put Strategy
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Holder Gains When Market Falls
Long Put: Bearish Mkt Dir Max Gain = Strike$ - Premium Max Loss = Premium Paid BE = Strike $ - Premium |
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Short Put Strategy
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Writer Gains When Market Rises
Short Naked Put: Bullish Mkt Dir Max Gain = Premium Max Loss = Strike $ - Premium BE = Strike $ - Premium |
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Covered Call Writing:
Long Stock / Short Call |
Flat Market Strategy, Rising Strategy if "Out the Money" Contracts Sold
Max Gain = Premium - (Diff Betw Stk Purchase & Strike) Max Loss = Stock Cost - Premium (Market to 0) BE = Stock Cost - Premium |
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Income Strategies:
Covered Put Writing |
Short Stock / Short Put
Max Gain = Premium (Offset by Stock Sale $ & Stock Put Price) Max Loss = Unlimited BE = Stock Sale $ + Premium |
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Long Call Spread
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"Bull Spread" - Low Prof / Low Prem
Buy Lower / Sell Higher - Debit Max Gain = (Difference Between Strike $) - Debit Max Loss = Debit BE = Long Strike $ + Debit |
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Short Call Spread
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"Bear Spread" - Low Prem / Low Risk
Sell Lower / Buy Higher - Credit Max Gain = Credit Max Loss = (Diff Between Strike $) - Credit BE Point = Short Strike $ + Credit |
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Long Put Spread
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"Bear Spread" - Lower Profit / Lower Prem
Max Gain = (Diff Between Strike Prices) - Debit Buy Higher / Sell Lower - Debit Max Loss = Debit BE Point = Long Strike $ - Debit |
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Short Put Spread
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"Bull Spread" - Low Prem for Low Risk
Sell Higher / Buy Lower - Credit Max Gain = Credit Max Loss = (Diff Bet Strike $) - Credit BE = Short Strike Price - Credit |
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Long Straddle
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Both Bullish & Bearish
Max Gain = Unlimited (Call Side), Strike $ - Total Prem (on Put Side) Max Loss = Total Premium BE = Call Strike $ + Total Premium Put Strike Price - Total Premium |
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Short Straddle
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Flat Market Strategy
Max Gain = Total Premium Max Loss = Unlimited (on Call Side) Strike $ - Total Prem (on Put Side) BE's = Call Strike $ + Total Prem Put Strike $ - Total Prem |
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Calendar Spread
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"Horizontal Spread" or "Time Spread"
"Buy Call - Sell Call" Same Strike - Diff Expiration |
