Learning To Invest

Naked Straddle Write: Sell Call (S=50), And Put (S=50)


             Risk: Unlimited-both up and down
             Profit Potential: Limited-at strike
             Equivalent Positions: Ratio Write
             Follow-up Action: Close out losing side or buy protective puts or calls


Calendar Straddle: Buy A Long Term Straddle (Call S=50, Put S=50, T=.5), And Sell A Short Term Straddle
     (Call S=50, Put S=50)

             Risk: Limited-both up and down
             Profit Potential: Limited-at strike
             Equivalent Positions: None
             Follow-up Action: None


Put Calendar Spread: Buy A Long Term Put (S=55, T=.5)), And Sell A Short Term Put (S=55) Against It, With Strikes
     At Stock Price-See Bearish Put Calendar Spread