Question 1

Collar

Accepted Answer

You own (long) 100 shares of stock then sell (short) an OTM Call and buy (long) an OTM Put

Question 2

Long Straddle

Accepted Answer

You buy (long) an ATM Call and buy (long) an ATM Put

Question 3

Short Iron Butterfly

Accepted Answer

You sell (short) one ATM Put and buy (long) one OTM Put and sell (short) one ATM Call and buy (long) one OTM Call

Question 4

Short Iron Condor

Accepted Answer

You sell (short) one OTM Put and buy (long) one further OTM Put and sell (short) one OTM Call and buy (long) one further OTM Call

Question 5

Bearish Broken-Wing Butterfly

Accepted Answer

You buy (long) one OTM Put, sell (short) two further OTM Puts, buy (long) one even further OTM Put that is closer to the sold OTM Puts than the first long OTM Put

Question 6

Long Call Broken-Wing Butterfly

Accepted Answer

You buy (long) one OTM Call, sell (short) two further OTM Calls, buy (long) one even further OTM Call that is closer to the sold OTM Calls than the first long OTM Call

Question 7

Long Put Butterfly

Accepted Answer

You buy (long) one OTM Put, sell (short) two further OTM Puts, buy (long) one even further OTM Put

Question 8

Long Call Butterfly

Accepted Answer

You buy (long) one OTM Call, sell (short) two further OTM Calls, buy (long) one even further OTM Call

Question 9

Call Credit Spread

Accepted Answer

You sell (short) a Call and buy (long) a further OTM Call

Question 10

Put Credit Spread

Accepted Answer

You sell (short) a Put and buy (long) a further OTM Put

Question 11

Put Debit Spread

Accepted Answer

You buy (long) a Put and sell (short) a further OTM Put

Question 12

Call Debit Spread

Accepted Answer

You buy (long) a Call and sell (short) a further OTM Call