Ratio Put Spread
Ratio Put Spread Ratio Put Spread Table of Contents Basics Concepts – Ratio Put Spread Description – Ratio Put Spread The Ratio Put Spread is the opposite of a Put Ratio Backspread in that we’re net short options. This means we’re exposed to uncapped risk and can only make a limited reward. Increasing volatility is […]
Collar
Collar Collar Table of Contents Basics Concepts – Collar Description – Collar The Collar is similar to a Covered Call but typically works over a much longer time period and involves another leg—buying a put to insure against the stock falling. The effect is of buying a stock, insuring against a downmove by buying puts, […]
Bear Put Ladder
Bear Put Ladder Bear Put Ladder Table of Contents Basics Concepts – Bear Put Ladder Description – Bear Put Ladder The Bear Put Ladder is an extension to the Bear Put Spread. By shorting another put at a lower strike price, the position assumes uncapped risk potential if the stock plummets downwards. if the stock […]
Synthetic Put
Synthetic Put Synthetic Put Table of Contents Basics Concepts – Synthetic Put Description – Synthetic Put Basically, we buy the stock, but we insure against a downturn by buying an ATM or slightly OTM (lower strike) put. The net effect is that of creating the same shape as a standard long call but with the […]
Bear Call Ladder
Bear Call Ladder Bear Call Ladder Table of Contents Basics Concepts – Bear Call Ladder Description – Bear Call Ladder The Bear Call Ladder is an extension to the Bear Call Spread. By buying another call at a higher strike, the position assumes uncapped reward potential if the stock soars. if the stock rises above […]
Short Combo
Short Combo Short Combo Table of Contents Basics Concepts – Short Combo Description – Short Combo The Short Combo is the precise opposite of a Long Combo. Instead of nearly replicating the Long Stock (or Futures) position, we nearly replicate the Short Stock (or Futures) position by buying OTM puts and selling OTM calls. The […]
Long Box
Long Box Long Box Table of Contents Basics Concepts – Long Box Description – Long Box The Long Box is a complex strategy that can (in some jurisdictions) have beneficial effects for tax planning from year to year. If your incentive for this strategy is a tax play, you should consult with your tax advisor […]
Bull Put Ladder
Bull Put Ladder Bull Put Ladder Table of Contents Basics Concepts – Bull Put Ladder Description – Bull Put Ladder The Bull Put Ladder is an extension to the Bull Put Spread. By buying another put at a lower strike, the position assumes uncapped reward potential if the stock plummets. In Summary if the stock […]
Bear Call Spread
Bear Call Spread Bear Call Spread Table of Contents Basics Concepts – Bear Call Spread Description – Bear Call Spread The Bear Call Spread is an intermediate strategy that can be profitable for stocks that are either range bound or falling. The concept is to protect the downside of a Naked Call by buying a […]
Bull Call Ladder
Bull Call Ladder Bull Call Ladder Table of Contents Basics Concepts – Bull Call Ladder Description – Bull Call Ladder The Bull Call Ladder is an extension to the Bull Call Spread. By shorting another call at a higher strike price, the position assumes uncapped risk potential if the stock soars upwards. The net effect […]