Option strategies

Question 1

Covered Call

Answer 1

Long stock, short call
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Question 2

protective put

Answer 2

long stock, long put

Limits downside, unlimited upside but profits will always be lower than the stock

Question 3

Hoe veranderen de sharpe en sortino ratios van een PPUT tov een aandeel

Answer 3

lagere sharpe ratio maar hogere sortino ratio, omdat sortino ratio alleen kijkt naar downside risk

Question 4

Collar

Answer 4

long stock, long put, short call different strike prices,

brackets portfolio between two bounds and reduces costs of only the protective put at the expense of giving up profit potential

Question 5

Bull spread

Answer 5

buy a call with x1 sell a call with x2 X1<X2>X1</X2>

Question 6

Bear spread

Answer 6

Sell call with x1 buy call with x2 X1<X2
Buy Put with x1 sell put with x2 X1<X2

Question 7

Straddle

Answer 7

long call and put with same strike price

Question 8

Strangle

Answer 8

long call and put with different strike price