What is an Option?
This financial instrument gives you the right, but not the obligation, to buy or sell an asset at a set price.
What is an option?
This type of option gives the right to buy the underlying asset.
What is a call option?
This Greek measures how much an option’s price changes with a $1 change in the underlying.
What is Delta?
The maximum loss for an option buyer.
What is the premium paid?
You expect Apple stock to rise. You buy a call. This is a ___ strategy.
What is bullish?
The fixed price at which the underlying can be bough or sold.
What is the strike price?
This type of option gives the right to sell the underlying asset.
What is a put option?
This Greek measures sensitivity to time decay.
What is Theta?
The maximum profit for a call buyer is this.
What is unlimited?
You expect Tesla stock to fall. You buy a put. This is a ___ strategy.
What is bearish?
The day when an option contract expires.
What is the expiration date?
A call option buyer profits when the price of the underlying asset does this.
What is increases?
This Greek measures sensitivity to volatility.
What is Vega?
The breakeven for a long call is calculated as ___.
What is strike price + premium?
You sell a covered call. This means you also own ___.
What is the underlying stock?
The underlying security for an option would be this type of financial asset ....
What is a stock, ETF, or index?
A put option buyer profits when the price of the underlying asset does this.
What is decreases?
Delta for deep in-the-money calls is approximately this value.
What is 1?
The breakeven for a long put is calculated as ___.
What is strike price - premium?
You sell a put without owning the underlying. This is called a ___ put.
What is naked?
The cost of buying an option is called this?
What is the premium?
Selling a call option exposes the trader to tis type of potential loss.
What is unlimited loss?
When volatility increases, option prices usually do this.
What is increase?
The breakeven for a long put is calculated as ....
Strike Price - Premium
A trader buys a call and sells another call at a higher strike. This strategy is a .......
What is a bull call spread?