NISM Series XIII Common Derivatives Certification Exam Notes

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  • Option Strategies:Option spreads combine calls/puts with different strikes and/or maturities for tailored payoff.
  • Vertical Spread:Same expiry, different strikes — can be bullish or bearish using calls or puts.
  • Horizontal Spread:Same strike, different expiry dates — time value strategy.
  • Diagonal Spread:Different strikes and expiry — combines vertical and horizontal.
  • Long Straddle:Buy call and put at same strike to profit from high volatility.

NISM Common Derivatives

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