8.3

Long Strategies

This strategy consists of buying a call option.

This strategy combines a longer-term bullish outlook with a near-term neutral/bearish outlook.

This strategy profits if the underlying stock is at the body of the butterfly at expiration.

This strategy profits if the underlying security is between the two short call strikes at expiration.

This strategy profits if the underlying stock is outside the outer wings at expiration.

This strategy profits if the underlying stock is outside the wings of the iron butterfly at expiration.

This strategy consists of buying puts as a means to profit if the stock price moves lower.

This strategy profits if the underlying stock is at the body of the butterfly at expiration.

This strategy combines a longer-term bearish outlook with a near-term neutral/bullish outlook.

This strategy profits if the underlying security is between the two short put strikes at expiration.

The initial cost to initiate this strategy is rather low, and may even earn a credit, but the upside potential is unlimited.

The initial cost to initiate this strategy is rather low, and may even earn a credit, but the downside potential is substantial.

This strategy is simple. It consists of acquiring stock in anticipation of rising prices.

This strategy consists of buying a call option and a put option with the same strike price and expiration.

This strategy profits if the stock price moves sharply in either direction during the life of the option.

Sponsored By:

  • OCC

OIC Participant Exchanges:

  • BOX
  • Cboe
  • MIAX
  • Nasdaq
  • NYSE

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