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A short call ladder is also called a bear call ladder. [7] A long put ladder is also called a bear put ladder. [8] 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 ...
A long butterfly options strategy consists of the following options: Long 1 call with a strike price of (X − a) Short 2 calls with a strike price of X; Long 1 call with a strike price of (X + a) where X = the spot price (i.e. current market price of underlying) and a > 0. Using put–call parity a long butterfly can also be created as follows:
Buy put options on falling stocks. Put options rise in price when the underlying stock falls in price, and this basic option strategy gives the put owner the ability to multiply their money over ...
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]
A long call offers the right, but not the obligation, to purchase a stock (or other asset) at a specific price by a specific date, at which point the option expires.
The most basic options are “put” and “call.” ... like uncovered short calls, expose options traders to the potential for unlimited losses. When you purchase options as a long call, on the ...
Selling out-of-the money call and put options against stocks owned. Out-of-the-money options have lower odds of being exercised. ... Limited profit if asset prices move beyond short and long ...
A long condor consists of four options of the same type (all calls or all puts). [1] The options at the outer strikes are bought and the inner strikes are sold (and the reverse is done for a short condor). [1] The difference between the two lowest strikes must be the same as the difference between the two highest strikes. [1]