Ratio Call Spread (52.5): Buy Call At Lower Strike (S=50), And Sell More Than One Call At Upper Strike (S=55)
Risk: Unlimited-upside
Profit Potential: Limited-at upper strike
Equivalent Positions: None
Follow-up Action: On upside buy more long calls to alter ratio to convert to bull spread
Reverse Hedge: Short The Stock (P=50), Buy 2 Calls (S=50)
Risk: Limited-at strike
Profit Potential: Unlimited-both up and down
Equivalent Positions: Straddle or buy stock and puts
Follow-up Action: None
Diagonal Combination: Buy Long Term Combination (Call S=55, Put S=45, T=.5), And Sell Short Term Combination
(Call S=55, Put S=45)
Risk: Limited-upside and downside
Profit Potential: Limited-between strikes
Equivalent Positions: None
Follow-up Action: None
