Day 3 Flashcards

1
Q

Very Inflated Single Leg strategiesShort Put (Credit/Bullish)

A

used a lot in pro active investor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Very Inflated Single Leg strategiesShort Put (Credit/Bullish)action/maintenance

A

don’t bother to sell option for less than 25 centsbuy back before experation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Very Inflated Single Leg strategiesShort Put (Credit/Bullish)graph

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Very Inflated Single Leg strategiesShort Put (Credit/Bullish)data

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Very Inflated Single Leg strategiesShort Call (Credit/Bearish)

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Very Inflated Single Leg strategiesShort Call (Credit/Bearish)action/maintenance

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Very Inflated Single Leg strategiesShort Call (Credit/Bearish)graph

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Very Inflated Single Leg strategiesShort Call (Credit/Bearish)data

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

options liquidity

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Parameters to assess liquidity

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Good vs Bad Liquidity

A

lots of volumelots of open interestlittle spreadis good liquidity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

option Selection ParametersExpirationstrike selectionDirectional exposurerisk vs Reward

A

buy for long timesell for short time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

activation rule

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

proper use of ordersmeets entryhits stopreaches target

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

5 greeksdeltathetavegagammarho

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

theta

A
17
Q

interpretation of theta

A
18
Q

theta correlation

A
19
Q

theta effect

A
20
Q

vega

A
21
Q

interpretation of vega

A
22
Q

vega correlation

A
23
Q

vega effect pt 1

A
24
Q

vega effect pt 2

A
25
Q

Gamma

A
26
Q

Interpretation of Gamma

A

Gamma measures the change in deltaGamma reflects the dynamic leverage effect

27
Q

Gamma correlation

A
28
Q

Gamma Effect

A
29
Q

Rho

A
30
Q

interpretation of Rho

A