Table of Contents
How to use this study Guide vii
Lesson 1 Definitions 1
Lesson 2 Covered Call Writing 9
Lesson 3 Call Buying 16
Lesson 4 Other Call Buying Strategies 23
Lesson 5 Naked Call Writing 30
Lesson 6 Ratio Call Writing 37
Lesson 7 Bull Spreads Using Call Options 44
Lesson 8 Bear Spreads Using Call Options 50
Lesson 9 Calendar Spreads 54
Lesson 10 The Butterfly Spread 58
Lesson 11 Ratio Call Spreads 62
Lesson 12 Combining Calendar and Ratio Spreads 66
Lesson 13 Reverse Spreads 70
Lesson 14 Diagonalizing a Spread 74
Lesson 15 Put Option Basics 78
Lesson 16 Put Option Buying 84
Lesson 17 Put Buying in Conjunction with Common Stock Ownership 89
Lesson 18 Buying Puts in Conjunction with Call Purchases 93
Lesson 19 The Sale of a Put 98
Lesson 20 The Sale of a Straddle 102
Lesson 21 Synthetic Stock Positions Created by Puts and Calls 106
Lesson 22 Basic Put Spreads 111
Lesson 23 Spreads Combining Calls and Puts 116
Lesson 24 Ratio Spreads Using Puts 121
Lesson 25 Long-Term Option Strategies 126
Final Examination 133
Final Examination Answers 163