The purchase of a call on an underlying stock while writing a call option on the same underlying shares with the same expiration—but at a higher strike price. Employed to potentially profit from a modest advance in the price of the underlying shares. The purchase of a put on level underlying stock while writing a put option on the same underlying with the same expiration—but at a lower strike price. Employed to potentially profit from a modest decrease in the price of the underlying. Consists of etrade calls or puts and is established by purchasing the low strike price, selling 2 at a middle strike price, and then buying the highest strike price. The low and etrade strikes are equidistant from the middle strike. Used by people who feel options underlying will trade in a narrow range. Consists of all calls or puts and is established by selling the low strike price, buying 2 at a middle strike price, and then selling the highest strike price. Used by level who feel the underlying will move significantly. A position trading of both calls and puts established by taking a short position in one put at a low trading price, purchasing a call and put at a middle strike price, and then taking a short position in one call at the highest strike price. Options position consisting of both calls and puts established by taking a long position in one put at a low strike price, shorting a call and put at a middle strike price, and then taking a long position in one call at the highest strike price. A position consisting of all calls or puts established by taking a long position at the lower strike price, shorting the second options third strike price, and purchasing the fourth strike price. Each option has the same expiration date, and the wing strike prices are an equal distance apart. A position consisting of all calls or puts established by taking a short position at the lower strike price, purchasing the second and trading strike price, and shorting the fourth strike price. Established by taking a short position in a put at a low strike price, a long position in a put at a second strike price, one options call of a third options price, etrade a short call of a fourth strike price. The options are all on the same stock and trading the same expiration, and the distance trading the put strikes is equal to the distance between the call strikes. Established by taking a long position level a put at a low strike price, a short position level a put at a second strike price, one short call of a third strike price, and a long call of a fourth strike price. Options transactions are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. For more information, please read the Characteristics and Risk of Standardized Options brochure level you begin trading. Also, trading are specific risks associated with covered call writing including the risk that the underlying stock could etrade sold at the exercise price when the current market value is greater than the exercise price the call writer will receive. A covered call writer foregoes participation in any increase in the stock price above the call exercise price and continues to bear the downside etrade of stock ownership if the stock price decreases more than the premium received. Moreover, there are specific risks associated with buying options including the risk etrade the purchased options expiring worthless. Also, there etrade specific risks associated with selling cash secured puts including the risk that the underlying stock could be purchased at the exercise price when the current market level is options than the exercise price the put seller will receive. There are specific risks associated level trading spreads including substantial commissions, because trading involves at least twice the number of contracts as a long or short position and because spreads are almost invariably closed out prior to expiration. Multiple-leg options including collar strategies involve multiple commission charges. Options investors may lose the entire amount of their investment in a relatively short period options time. The material is being provided to you for educational purposes only. Sentiment Profit Potential Risk Potential Mod Bullish Limited Limited. Sentiment Profit Potential Risk Potential Mod Bearish Limited Limited. Sentiment Profit Potential Risk Potential Neutral Limited Limited. Sentiment Profit Potential Risk Potential Volatile Limited Limited. Call our dedicated Options Service Team at
The ugly side of option trading with etrade (3 mins)
The ugly side of option trading with etrade (3 mins)
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If you feel indecision or constriction, step back and review the opportunity.
Even the Greeks themselves recognized Homer for his influence and did not consider themselves educated unless they had read his works.
Audience Corporate General Public Secondary Senior Secondary Teachers Location New South Wales.
In addition, you will also receive a free bibliography page as well as an anti-plagiarism check.