1
Q
Short Selling and Short Puts (Covered Put Writing)
A
The objective of the strategy is that a customer with a short stock position who wants to cover his stock might write a put option to receive some additional premium in advance of buying back the stock.
2
Q
A put is considered out-of-the-money when
A
the price of the underlying stock is at or higher than the strike price of the put.
3
Q
Trading on equity contracts ceases at
A
4pm EST on the business day before expiration
4
Q
A married put
A
simultaneously purchasing puts and stock for the equivalent number of contracts
5
Q
Breakeven for call spreads
A
C A L
Call Add to the Lower
6
Q
Breakeven for put spreads
A
Pu S H
Puts Subtract from the Higher
