short put page 26 amendment

short put page 26 amendment - paid. Long Call e Buying a...

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Options made Easy Page 26 amendment Short Put amendment Short Call e Writing a call 1. belief that stock will fall (bearish outlook); 2. maximum reward limited to premium received; 3. risk potentially unlimited (as stock price rises); 4. can be combined with another position to limit the risk. Long Put e Buying a put 1. belief that stock will fall (bearish outlook); 2. risk limited to premium paid; 3. unlimited maximum reward up to the Strike Price less the premium
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Unformatted text preview: paid. Long Call e Buying a call 1. belief that stock will rise (bullish outlook); 2. risk limited to premium paid; 3. unlimited maximum reward. Short Put e Writing a put 1. belief that stock will rise (bullish outlook); 2. maximum reward limited to the premium received; 3. maximum risk unlimited down to the Strike Price less the premium received; 4. can be combined with another position to limit the risk....
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