Basic Option Strategies Flashcards by Delia Archer

Q

Purpose:
- Generate Income

Example:
Long Stock + Short Call

What Trading Strategy is this?

A

Strategy: Covered Call

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Q

Purpose:
- Hedge Long Position

Example:
Long Stock + Long Put

What Trading Strategy is this?

A

Strategy: Protective Put

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Q

Purpose:
- Generate Income

Example:
Short Stock + Short Put

What Trading Strategy is this?

A

Strategy: Covered Put

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Q

Purpose:
- Hedge Short Position

Example:
Short Stock + Long Call

What Trading Strategy is this?

A

Strategy: Protective Call

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