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More from William Hodge (10)
Options Strategy Chart
- 1. Option Example Bull / Bear Max Gain Max Loss Breakeven
buy calls buy 1 xyz Oct. 50 call @ 3 bull unlimited premium strike + premium
buy puts buy 1 xyz Oct. 40 put @ 2 bear strike minus premium premium strike - premium
sell 1 abc Jan. 50 call @ 4,
sell uncovered calls bear premium unlimited strike + premium
& do not own abc
sell 1 abc Jan. 50 call @ 2,
sell covered calls bear strike + prem.- cost of strike cost - premium cost - premium
& own 100 shares abc
sell 1 xyz Feb. 35 put @ 3,
sell uncovered puts bull premium strike - premium strike - premium
& not short xyz stock
sell 1 xyz Feb. 35 put @ 3,
sell covered puts bull SS + prem. - strike unlimited SS + premium
& short 100 shares xyz
buy 1 abc Oct. 50 call @ 5,
call credit spread bear net credit diff in strike - net credit lower strike + credit
sell 1 abc Oct. 40 call @ 8
buy 1 abc Jan 50 call @ 8,
call debit spread bull diff in strike - net debit net debit lower strike + debit
sell 1 abc Jan 40 call @ 5
buy 1 abc Nov. 40 put @ 8,
put debit spread bear diff in strike - net debit net debit higher strike - net debit
sell 1 abc Nov. 50 put @ 5
buy 1 axy Dec. 40 put @ 5,
put credit spread bull net credit diff in strike - net debit higher strike - net credit
sell 1 axy Dec. 50 put @ 8
buy 1 xyz Oct. 130 call @ 8,
buy straddle volatility call unlimited, put strike - prem. premium call strike + prem., put strike - prem.
buy 1 xyz Oct.130 put @ 6
sell 1 xyz Oct. 130 call @ 5,
sell straddle flat premium call unlimited, put strike - prem. call strike + prem., put strike - prem.
sell 1 xyz Oct. 120 put @ 7
buy 100 shares xyz @ 80
protective put buyer buy 1 xyz July 80 put @ 2.50 hedge unlimited cost + prem. - strike cost + prem. (cost basis)
(at the same time)
SS 100 shares xyz @ 80
protective call buyer buy 1 xyz July 80 call @ 3 hedge short sale - prem. strike + prem. - short sale cost - prem. (cost basis)
(at the same time)