2-11-14 - limited Covered put write unlimited limited...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Derivatives November 14 Bullish Strategies Risk Reward Call purchase (long call) limited unlimited unlimited unlimited Bull spread limited limited Protective Put limited unlimited Bullish calendar spread limited unlimited Covered call unlimited limited Naked put write unlimited limited *profit when the price goes up Bearish Strategies Risk Reward Put purchase limited unlimited Synthetic put limited unlimited Synthetic short sale unlimited unlimited Bear Spread limited
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: limited Covered put write unlimited limited Bearish calendar spread limited unlimited Naked Call write unlimited limited *Profit when price goes down *Covered Call: long stock, short call (most common)-sometimes called a synthetic short put-done for arbitrage opportunities-allows owner of a stock to make a little extra money *Protective Put: long stock, long put-sometimes called “portfolio insurance”-looks like a long call...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online