A long call is the same as a short put B. A short call is the same as a long put Skip Navigation. Chegg home. Books. Study. Textbook Solutions A long call is the same as a short put B. A short call is the same as a long put C. A call on a stock plus a stock the same as a put D. All of the above E. None of the above . Get more help from How to Increase Your Option Approval Level Without ... Mar 06, 2018 · The Stock-plus-put combination is a synthetic long call. In this particular case, that gives us an alternative way to construct a position that we might want to do (a long call) in an account where we might not be allowed to do it (an account with Level One approval. Which of the following describes a covered call A A long ... 17. Which of the following describes a covered call? A) A long call option on a stock plus a long position in the stock B) A long call option on a stock plus a short put option on the stock C) A short call option on a stock plus a short position in the stock D) A short call option on a stock plus a long position in the stock E) None of the above Answer: D
The customer must deposit 50% of $5,800 to buy the ABC stock = $2,900. The customer must deposit 50% of $9,600 to sell short the XYZ stock = $4,800. The short call is covered by the long stock position, so no margin is required. The short puts are covered by the short stock position, so no margin is required.
How and Why to Use a Covered Call Option Strategy Mar 27, 2020 · A covered call is an options strategy involving trades in both the underlying stock and an options contract. The trader buys or owns the underlying stock or asset. They will then sell call options (the right to purchase the underlying asset, or shares of it) and then wait for the options contract to be exercised or to expire. Option Strategies, Illustrated with Graphs and Examples ... An introduction to option strategies, illustrated with multi-colored graphs and real-world examples. If the price of Microsoft rises above $32.50, then you exercise your long call to cover your short call, netting you the difference of $2,500 plus the premium of your short call minus the premium of your long call minus commissions.
Nov 12, 2009 · For a long call, your risk is the price you pay for the call. For a short put, your risk is the strike price of the put minus what you made selling the put. That may be a big risk, but is still limited, even if the stock price goes to zero. So while short call or long put may benefit from price movement in the same direction, risk is very
Finance 507 Final Flashcards | Quizlet A long position in call options plus a short position in the underlying stock B. A short position in call options plus a short position in the underlying stock C. A long position in put options and a long position in the underlying stock D. Simple option trading strategies: an option plus the ... Oct 15, 2018 · 1) A protective put is long put + long stock and has a profit profile similar to a long call; 2) its counterparty is short put + short stock and has a profit profile similar to a short call. 3) a Short Call | Naked (Uncovered) Call Strategies - The ... A short call (AKA naked call/uncovered call) is a bearish-outlook advanced option strategy obligating you to sell stock at the strike price if the option is assigned. NOTE: Uncovered short calls (selling a call on a stock you don’t own) is only suited for the most advanced option traders. Long Call Option Strategy | Call Options - The Options ...
Finance 507 Final Flashcards | Quizlet
Simple option trading strategies: an option plus the ... Oct 15, 2018 · 1) A protective put is long put + long stock and has a profit profile similar to a long call; 2) its counterparty is short put + short stock and has a profit profile similar to a short call. 3) a Short Call | Naked (Uncovered) Call Strategies - The ...
Your short call will offset the long stock so you've bought another call at a different strike to benefit if the stock rallies. If the stock falls, you can buy back the short call but you'll still have the gains in the long stock that you'll forgoe plus the premium lost with the call you've just purchased.
21 Aug 2008 Assuming stock is worth 0, you sold the put for $5 and strike price was $50. your call is long gamma and vol, short theta. put is the opposite and in equal plus as long as it's not ATM, gotta look at dvega/dvol and ddelta/dvol. is a long stock asset purchase. A long call position is one where an investor purchases a call option. Thus, a long call also benefits from a rise in the underlying