MGTC71-8 - K 1 K 2 Profit S T 6 Bear Spread Using Puts K 1...

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1 MGTC71-Lecture 8 Trading Strategies Ata Mazaheri 2 Types of Strategies • Take a position in the option and the underlying • Take a position in 2 or more options of the same type (A spread) • Combination: Take a position in a 3 Profit S T K Profit S T K Profit S T K Profit S T K (a) (b) (c) (d) 4 Bull Spread Using Calls K 1 K 2 Profit S T 5 Bull Spread Using Puts
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Unformatted text preview: K 1 K 2 Profit S T 6 Bear Spread Using Puts K 1 K 2 Profit S T 7 Bear Spread Using Calls K 1 K 2 Profit S T 8 Butterfly Spread Using Calls K 1 K 3 Profit S T K 2 9 Butterfly Spread Using Puts K 1 K 3 Profit S T K 2 10 A Straddle Combination Profit S T K 11 Strip & Strap Profit K S T Profit K S T Strip Strap 12 A Strangle Combination K 1 K 2 Profit S T...
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This note was uploaded on 07/20/2011 for the course MGMT 71 taught by Professor Mazaheri during the Spring '11 term at University of Toronto- Toronto.

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MGTC71-8 - K 1 K 2 Profit S T 6 Bear Spread Using Puts K 1...

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