NISM Series XIII Common Derivatives Certification Exam Notes

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  • Long Straddle: Buying call and put to profit from large price movements.
  • Short Straddle: Selling call and put, profiting from price stability.
  • Long Strangle: Buying OTM call and put for large price swings with lower cost.
  • Short Strangle: Selling OTM call and put, risking unlimited loss for premium.
  • Diagonal Spread: Combining options with different strikes and expiries.

NISM Common Derivatives

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