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This would yield a limited loss if the options expire with the underlying near or above 110, a large loss if the options expire with the underlying far below 95, and a limited profit if the underlying is near or between 95 and 105. [1] A short ladder is the opposite position of a long ladder. Thus, for the first example above, the corresponding ...
There are two primary types of stock options: incentive stock options (ISOs) and non-qualified stock options (NSOs). ISOs are generally only offered to employees and may receive favorable tax ...