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A short put ladder is also called a bull put ladder. [9] A ladder can be seen as a modification of a bull spread or a bear spread with an additional option: for instance, a bear call ladder is equivalent to a bear call spread with an additional long call. A bull put ladder is equivalent to a bull put spread with an additional long put.
The shot put is a track and field event involving "putting" (throwing) a heavy spherical ball—the shot—as far as possible. For men, the sport has been a part of the modern Olympics since their revival (1896), and women's competition began in 1948 .
Generally, a put option that is purchased is referred to as a long put and a put option that is sold is referred to as a short put. A naked put, also called an uncovered put, is a put option whose writer (the seller) does not have a position in the underlying stock or other instrument. This strategy is best used by investors who want to ...
Strangle - where you buy a put below the stock and a call above the stock, with profit if the stock moves outside of either strike price (long strangle). [4] Strangle can be either long or short. In short strangle, you profit if the stock or index remains within the two short strikes. [citation needed]
For example, a bull spread constructed from calls (e.g., long a 50 call, short a 60 call) combined with a bear spread constructed from puts (e.g., long a 60 put, short a 50 put) has a constant payoff of the difference in exercise prices (e.g. 10) assuming that the underlying stock does not go ex-dividend before the expiration of the options.
The long put costs $100 ($1 per contract * 100 shares per contract * 1) offset by $50 from the short call ($0.50 per contract * 100 shares per contract * 1), or a net debit of $50.
A short butterfly position will make profit if the future volatility is higher than the implied volatility. A short butterfly options strategy consists of the same options as a long butterfly. However now the middle strike option position is a long position and the upper and lower strike option positions are short.
Profit diagram of a bear spread using put options. A bear put spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. It is entered by: buying higher striking in-the-money put options and