Naked Put: Sell A Put (S=50)
Risk: Unlimited-downside
Profit Potential: Limited-above strike
Equivalent Positions: Covered call write
Follow-up Action: Rolling up and down
Backspread (52.5): Sell A Call (S=50) At A Lower Strike And Buy Two Calls (S=55) At The Next Higher Strike
For A Credit
Risk: Limited-between strikes
Profit Potential: Limited-downside, unlimited-upside
Equivalent Positions: None
Follow-up Action: Close position if theta loss becomes exaggerated
Bullish Split Strikes (52.5): Sell The Out Of Money Put (S=50) And Buy The Out Of Money Call (S=55)
Risk: Unlimited-downside
Profit Potential: Unlimited-upside
Equivalent Positions: None
Follow-up Action: None
