Combinations Flashcards
1
Q
Combinations
A
A multiple option position in which an investor buys or sells and equal number of calls and puts on the same stock. The call and put have different strike prices, expiration dates, or both.
2
Q
Long Combinations
A
The investor that purchases a combination is hoping for volatility.
3
Q
Short Combinations
A
The writer of a combination is hoping for stability.
