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Unformatted text preview: Option Strategies: Naked Strategies: long call/ paper buying strategy allocating a portion of a portfolios funds to purchase a call option and investing the balance of the funds in a risk-free or low-risk money market instrument- covered call writing allows the investor to reduce the downside risk for the portfolio- investor agrees to cap the potential profit- protective put strategy is long put long stock and allows participation in upward movements in the stock Warrant contract that gives the holder of the warrant the right but not the obligation to buy a designated number of shares of a stock at a specified price before a set date...
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- Winter '08