Term
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Definition
Buy Call
Outright Bullish
Max Reward: Unlimited
Max Risk: Premium Paid
Break Even: Strike Price + Premium Paid
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Term
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Definition
Buy Put + Buy Underlying
Outright Bullish (Near term concerns)
Max Reward: Unlimited
Max Risk: (Stock Price - Strike Price) + Premium Paid
Break Even: Stock Price + Premium Paid
Also Called a Synthetic Call
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Term
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Definition
Buy Underlying + Write Call
Neutral to Bullish
Max Reward: Strike Price - (Stock Price Paid - Premium Recieved)
Max Risk: Stock Price Paid - Premium Recieved
Break Even: Stock Price Paid - Premium Recieved
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Term
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Definition
Write Put
Neutral to Bullish
Max Reward: Premium Recieved
Max Risk: Strike Price - Premium Recieved
Break Even: Strike Price - Premium Recieved
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Term
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Definition
Buy Call + Write Call with Higher Strike Price
Moderately Bullish
Max Reward: (Strike Price of Short Call - Strike Price of Long Call) - Net Premium Recieved
Max Risk: Net Premium Paid
Break Even: Strike Price of Long Call + Premium Paid
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Term
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Definition
Sell Put + Buy Put with lower strike price
Neutral to Slightly Bullish
Max Reward: Net Premium Recieved
Max Risk: (Strike Price of Short Put - Strike Price of Long Put) - Net Premium Recieved
Break Even: Strike Price of Long Put + Premium Recieved
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Term
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Definition
Buy Put
Outright Bearish
Max Reward: Strike Price - Premium Paid
Max Risk: Premium Paid
Break Even: Strike Price - Premium Paid |
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Term
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Definition
Short Underlying + Buy Call
Outright Bearish with Near Term Concerns
Max Reward: Stock Price Paid - Premium Paid
Max Risk: (Stike Price - Stock Price Paid) + Premium Paid
Break Even: Stock Price Paid - Premium Paid
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Term
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Definition
Short Underlying + Write Put
Neutral to Bearish
Max Reward: (Stock Price Paid - Strike Price) + Premium Recieved
Max Risk: Unlimited
Break Even: Stock Price Paid + Premium Recieved
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Term
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Definition
Write Call
Neutral to Bearish
Max Reward: Premium Recieved
Max Risk: Unlimited
Break Even: Strike Price + Premium Recieved
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Term
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Definition
Buy Put + Sell Put with Lower Strike Price
Moderitley Bearish
Max Reward: (Strike Price of Long Put - Strike Pice of Short Put) - Premium Paid
Max Risk: Premium Paid
Break Even: Strike Price of Long Put - Premium Paid
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Term
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Definition
Sell Call + Buy Call with Higher Strike Price
Neutral to Slightly Bearish
Max Reward: Net Premium Recieved
Max Risk: (Strike Price of Long Call - Strike Price of Short Call) - Net Premium Recieved
Break Even: Strike Price of Short Call + Net Premiums Recieved
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Term
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Definition
Write Call + Write Put with the same UI, Strike Price and Expiry
Very Low Volatility Forecast
Max Reward: Premium Recieved
Max Risk: Unlimited
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Term
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Definition
Buy Call + Buy Put with the same UI, Strike Price and Expiry
High Volatility Forecast
Max Reward: Unlimited
Max Risk: Premium Paid
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