Collars

The collar is best thought of as combination of protective put and covered call. An investor who is long the underlying could …

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Straddles

A long straddle is an option combination in which one buys both puts and calls, with the same exercise price and same expiration …

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Spreads

Option spreads and combinations can be useful option strategies. We first consider money spreads, in which the two options differ …

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Option Basics

A Refresher on Options Terminology A call is a right to buy A put is a right to sell Each option contract will specify the underlying to which …

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