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CoveredCall_BullSpread
Page 2
.t + , $1 %*Secon*
*1 0(3*2 0(10call +c, $1
.t + , $1 %* ! ir*
*1 -0(3) 1*2 +0(60,call +c, $* +&
.t + , $% &
$17 $18 $19 $20 $21($6.00)
($4.00)
($2.00)
$0.00
$2.00
$4.00
.
Sto ! "pt#o (%#r&t o l')
($3.01) Strateg' Pa'o
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CoveredCall_BullSpread
Page 3
gies, but Strike Price Varies)
$1 $1) $20 $21 $22 $23 $24 $25-2 -1 0 1 2 3 4 5
e iu )0 0 0 -1 -2 -3 -4 -5
e iu )0 0 0 1 2 3 4 5
e iu )0 0 0 0 0 0 -1 -2
$1()) $1()) $1()) $0()) +$0(01, +$1(01, +$2(01, +$3(01,+$1()), +$1()), +$1()), +$0()), $0(01 $1(01 $2(01 $3(01$0( 3 $0( 3 $0( 3 $0( 3 $0( 3 $0( 3 +$0(17, +$1(17,
-2 -1 0 1 2 3 4 5$1()) $1()) $1()) $0()) +$0(01, +$1(01, +$2(01, +$3(01,
+$0(01, $0()) $1()) $1()) $1()) $1()) $1()) $1())
+$1()), +$1()), +$1()), +$0()), $0(01 $1(01 $2(01 $3(01$0( 3 $0( 3 $0( 3 $0( 3 $0( 3 $0( 3 +$0(17, +$1(17,
+$1(15, +$1(15, +$1(15, +$0(15, $0( 5 $1( 5 $1( 5 $1( 5
art !itle
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CoveredCall_BullSpread
Page 4
$22 $23 $24 $25
5 $1.99 $17 $18 $19 $2($3.00)
($2.00)
($1.00)
$0.00
$1.00
$2.00
$3.00
$4.00
"pt#o (Se o d)
$0.83
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CoveredCall_BullSpread
Page 5
C art !itle
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CoveredCall_BullSpread
Page 6
0 $21 $22 $23 $24 $25
"pt#o (*+#rd) ($1.99)
($1.15) Strateg' Pa'o
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Prote t#vePut_BearSpread
Page 7
Contant Inputs (For Modeling purposes, Stock Price is Constant forStock 20Volatility 20%Riskless rate 4%
Future Stock PricStock Price Long $15 $16
20 1 -5 -4
Strike P.t Long !i"e ption Pa!o" (#r1st ption 20 0 1 1 5 4
Strike P.t Long !i"e ption Pa!o" (#r%nd ption 23 0 1 1 7
7Strike P.t S ort !i"e ption Pa!o" (#r
&rd ption 20 0 0 1 -5 -4
ption Pre iu s (calculated belo #et tion Payo&s'irst ($1 %*) $3( 0 $2( 0Secon* ($% &) $5(07 $4(07
! ir* $1 %* +$3( 0, +$2( 0,
rading Strategies
Stock -5 -4tion +'irst only, $3( 0 $2( 0
Strategy Payo& +$1(20, +$1(20,
tion +Secon*, $5(07 $4(07tion +! ir*, +$3( 0, +$2( 0,
Strategy Payo& $1(27 $1(27
'irst*1 0(3*2 0(10call +c, $1
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Prote t#vePut_BearSpread
Page 8
.t + , $1 %*Secon*
*1 -0(3) 1*2 +0(60,call +c, $* +&
.t + , $% & ! ir*
*1 0(3*2 0(10call +c, $1
.t + , $1 %*
$17 $18 $19 $20($6.00)
($4.00)
($2.00)
$0.00
$2.00
$4.00
$6.00
Sto ! "pt#o (%#r
($1.20) Strateg' Pa
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Prote t#vePut_BearSpread
Page 9
ll Strategies, but Strike Price Varies)
e$17 $1 $1) $20 $21 $22 $23 $24 $25
-3 -2 -1 0 1 2 3 4 5
oss of Pre iu )3 2 1 0 0 0 0 0 0
oss of Pre iu )6 5 4 3 2 1 0 0 06 5 4 3 2 1 0 0 0
oss of Pre iu )-3 -2 -1 0 0 0 0 0 0
$1( 0 $0( 0 +$0(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20,$3(07 $2(07 $1(07 $0(07 +$0()3, +$1()3, +$2()3, +$2()3, +$2()3,
+$1( 0, +$0( 0, $0(20 $1(20 $1(20 $1(20 $1(20 $1(20 $1(20
-3 -2 -1 0 1 2 3 4 5$1( 0 $0( 0 +$0(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20,
+$1(20, +$1(20, +$1(20, +$1(20, +$0(20, $0( 0 $1( 0 $2( 0 $3( 0
$3(07 $2(07 $1(07 $0(07 +$0()3, +$1()3, +$2()3, +$2()3, +$2()3,+$1( 0, +$0( 0, $0(20 $1(20 $1(20 $1(20 $1(20 $1(20 $1(20$1(27 $1(27 $1(27 $1(27 $0(27 +$0(73, +$1(73, +$1(73, +$1(73,
C art !itle
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Prote t#vePut_BearSpread
Page 10
$21 $22 $23 $24 $25
t o l ') 5 $3.80
'o
$17 $18($4.00)($3.00)($2.00)($1.00)$0.00
$1.00$2.00$3.00$4.00$5.00
"pt#
$1.2
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Prote t#vePut_BearSpread
Page 12
$19 $20 $21 $22 $23 $24 $25
(Se o d) "pt#o (*+#rd) $5.07 ($3.80)
Strateg' Pa'o
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Butter l'Spread
Page 13
Contant Inputs (For Modeling purposes, Stock Price is Constant for aStock 20Volatility 20%Riskless rate 4%
Future Stock PricStock Price Long $15 $16
20 1 -5 -4
Strike Call Long !i"e ption Pa!o" (#1st ption 1 1 1 1 0 0
Strike Call Long !i"e ption Pa!o" (#%nd ption 22 1 1 1 0 0
Strike Call S ort !i"e ption Pa!o" (#&rd ption 20 1 0 1 0 0
ption Pre iu s (calculated belo #et tion Payo&s'irst ($& %1) +$3(21, +$3(21,Secon* ($1 1&) +$1(13, +$1(13,
! ir* $1 $1()) $1())
rading Strategies
Long call +$3(21, +$3(21,Long call +$1(13, +$1(13,S ort 2 calls % $3()7 $3()7
Strategy Payo& +$0(37, +$0(37,
'irst*1 0( 26 026*2 0(63call +c, $& %1
.t + , $* 51Secon*
*1 -0(176551
$2.00
$4.00
$6.00
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Butter l'Spread
Page 14
*2 +0(3 ,call +c, $1 1&
.t + , $% %- ! ir*
*1 0(3*2 0(10call +c, $1
.t + , $1 %*
$17 $18 $19($8.00)
($6.00)
($4.00)
($2.00)
$0.00
,o g all ,o g all
$3.97 ($0.37)
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Butter l'Spread
Page 15
ll Strategies, but Strike Price Varies)
e$17 $1 $1) $20 $21 $22 $23 $24 $25
-3 -2 -1 0 1 2 3 4 5
oss of Pre iu )0 0 1 2 3 4 5 6 7
oss of Pre iu )0 0 0 0 0 0 1 2 3
oss of Pre iu )0 0 0 0 -1 -2 -3 -4 -5
+$3(21, +$3(21, +$2(21, +$1(21, +$0(21, $0(7) $1(7) $2(7) $3(7)+$1(13, +$1(13, +$1(13, +$1(13, +$1(13, +$1(13, +$0(13, $0( 7 $1( 7$1()) $1()) $1()) $1()) $0()) +$0(01, +$1(01, +$2(01, +$3(01,
+$3(21, +$3(21, +$2(21, +$1(21, +$0(21, $0(7) $1(7) $2(7) $3(7)+$1(13, +$1(13, +$1(13, +$1(13, +$1(13, +$1(13, +$0(13, $0( 7 $1( 7$3()7 $3()7 $3()7 $3()7 $1()7 +$0(03, +$2(03, +$4(03, +$6(03,
+$0(37, +$0(37, $0(63 $1(63 $0(63 +$0(37, +$0(37, +$0(37, +$0(37,
C art !itle
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Butter l'Spread
Page 16
$20 $21 $22 $23 $24 $25
S+ort 2 al l& ($3.21) ($1.13)
Strateg' Pa'o
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Cale darSpread
Page 17
Contant Inputs (For Modeling purposes, Stock Price is Constant for allStock 20Volatility 20%Riskless rate 4%
Future Stock PricStock Price Long $15 $16
20 1 -5 -4
Strike Call S ort !i"e ption Pa!o" (#1st ption 20 1 0 1(00 0 0
Strike Call Long !i"e ption Value (Int%nd ption 20 1 1 1(25 $0(00 $0(01
ption Pre iu s (calculated belo') #et tion Payo&s'irst $1 $1()) $1())Secon* ($% %-) +$2(27, +$2(26,
rading StrategiesS ort call +s orter "at.rity, $1()) $1())Long call +longer "at.rity, +$2(27, +$2(26,
Strategy Payo& +$0(2 , +$0(27,
Pre iu s'irst
*1 0(3*2 0(10call +c, $1
.t + , $1 %*
Secon**1 0(3354102*2 0(11call +c, $% %-
.t + , $1 %
/ong call at atu
$17 $18 $19($4.00)($3.00)($2.00)($1.00)$0.00
$1.00$2.00$3.00$4.00
S+ort al l (&
$1.99
($0.28)
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Cale darSpread
Page 18
Future Stock Pric$15 $16
!i"e 0(25 0(25*1 -2(726 2 -2(13144*2 +2( 3, +2(23,call +c, $* ** $* *1
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Cale darSpread
Page 19
Strategies, but Strike Price Varies)
e$17 $1 $1) $20 $21 $22 $23 $24 $25
-3 -2 -1 0 1 2 3 4 5
oss of Pre iu )0 0 0 0 -1 -2 -3 -4 -5
rinsic Value . i e Value)$0(05 $0(17 $0(44 $0()0 $1(55 $2(36 $3(26 $4(22 $5(21
$1()) $1()) $1()) $1()) $0()) +$0(01, +$1(01, +$2(01, +$3(01,+$2(22, +$2(10, +$1( 3, +$1(37, +$0(72, $0(0) $0()) $1()5 $2()4
$1()) $1()) $1()) $1()) $0()) +$0(01, +$1(01, +$2(01, +$3(01,+$2(22, +$2(10, +$1( 3, +$1(37, +$0(72, $0(0) $0()) $1()5 $2()4+$0(23, +$0(11, $0(15 $0(61 $0(27 $0(07 +$0(02, +$0(06, +$0(0 ,
rit! of s0ort call
$20 $21 $22 $23 $24 $25
C art !itle
o rte r - atu r# t') , o g al l (l o ge r - atu r# t')
($2.27)
Strateg' Pa'o
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Cale darSpread
Page 20
e$17 $1 $1) $20 $21 $22 $23 $24 $25
0(25 0(25 0(25 0(25 0(25 0(25 0(25 0(25 0(25-1(5251) -0()5361 -0(412)3 0(1 0(5 7) 1(0531 1(4)762 1()2322 2(33144
+1(63, +1(05, +0(51, - 0(4) 0()5 1(40 1( 2 2(23$* *5 $* 1- $* $* * $1 55 $% &2 $& %2 $ %% $5 %1
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Straddle
Page 21
Contant Inputs (For Modeling purposes, Stock Price is Constant for alStock 20Volatility 20%Riskless rate 4%
Future Stock PricStock Price Long $15 $16
20 1 -5 -4
Strike Call Long !i"e ption Pa!o" (#First option 20 1 1 1 0 0
Strike P.t Long !i"e ption Pa!o" (#Second option 20 0 1 1 5 4
ption Pre iu s (calculated belo') #et tion Payo&s'irst ($1 ) +$1()), +$1()),Secon* ($1 %*) $3( 0 $2( 0
rading Strategies
Long Call +$1()), +$1()),Long P.t $3( 0 $2( 0
Strategy Payo& $1( 1 $0( 1
Secon**1 0(3*2 0(10call +c, $1
.t + , $1 %* ! ir*
*1 0(3*2 0(10call +c, $1
.t + , $1 %*
($3.00)
($2.00)
($1.00)
$0.00
$1.00
$2.00$3.00
$4.00
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Straddle
Page 22
$17 $18.
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Straddle
Page 23
l Strategies, but Strike Price Varies)
e$17 $1 $1) $20 $21 $22 $23 $24 $25
-3 -2 -1 0 1 2 3 4 5
oss of Pre iu )0 0 0 0 1 2 3 4 5
oss of Pre iu )3 2 1 0 0 0 0 0 0
+$1()), +$1()), +$1()), +$1()), +$0()), $0(01 $1(01 $2(01 $3(01$1( 0 $0( 0 +$0(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20,
+$1()), +$1()), +$1()), +$1()), +$0()), $0(01 $1(01 $2(01 $3(01$1( 0 $0( 0 +$0(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20,
+$0(1), +$1(1), +$2(1), +$3(1), +$2(1), +$1(1), +$0(1), $0( 1 $1( 1
C art !itle
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Straddle
Page 24
$19 $20 $21 $22 $23 $24 $25
,o g Call ,o g Put ($1.99) $3.80
$1.81 Strateg' Pa'o
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Stra gle
Page 25
Contant Inputs (For Modeling purposes, Stock Price is Constant for alStock 20Volatility 20%Riskless rate 4%
Future Stock PricStock Price Long $15 $16
20 1 -5 -4
Strike Call Long !i"e ption Pa!o" (#First option 22 1 1 1 0 0
Strike P.t Long !i"e ption Pa!o" (#Second option 1 0 1 1 3 2
ption Pre iu s (calculated belo') #et tion Payo&s'irst ($1 1&) +$1(13, +$1(13,Secon* ($* 51) $2(4) $1(4)
rading Strategies
Long Call +$1(13, +$1(13,Long P.t $2(4) $1(4)
Strategy Payo& $1(36 $0(36
Secon**1 -0(176551*2 +0(3 ,call +c, $1 1&
.t + , $% %- ! ir*
*1 0( 26 026*2 0(63call +c, $& %1
.t + , $* 51
($1.50)
($1.00)
($0.50)
$0.00
$0.50
$1.00$1.50
$2.00
$2.50
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Stra gle
Page 26
$17 $18.
,o g Call ,o g Pu
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Stra gle
Page 27
l Strategies, but Strike Price Varies)
e$17 $1 $1) $20 $21 $22 $23 $24 $25
-3 -2 -1 0 1 2 3 4 5
oss of Pre iu )0 0 0 0 0 0 1 2 3
oss of Pre iu )1 0 0 0 0 0 0 0 0
+$1(13, +$1(13, +$1(13, +$1(13, +$1(13, +$1(13, +$0(13, $0( 7 $1( 7$0(4) +$0(51, +$0(51, +$0(51, +$0(51, +$0(51, +$0(51, +$0(51, +$0(51,
+$1(13, +$1(13, +$1(13, +$1(13, +$1(13, +$1(13, +$0(13, $0( 7 $1( 7$0(4) +$0(51, +$0(51, +$0(51, +$0(51, +$0(51, +$0(51, +$0(51, +$0(51,
+$0(64, +$1(64, +$1(64, +$1(64, +$1(64, +$1(64, +$0(64, $0(36 $1(36
C art !itle
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Stra gle
Page 28
$19 $20 $21 $22 $23 $24 $25 t ($1.13) $2.49 $1.36 Strateg' Pa'o
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Str#p
Page 30
*2 +0(02,call +c, $1 -
.t + , $1 & ! ir*
*1 0(3*2 0(10call +c, $1
.t + , $1 %*
$17 $18
($5.00)($4.00)($3.00)($2.00)($1.00)$0.00
,o g al l ,o g
$3.80 $5 .8
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Str#p
Page 31
Strategies, but Strike Price Varies)
e$17 $1 $1) $20 $21 $22 $23 $24 $25
-3 -2 -1 0 1 2 3 4 5
oss of Pre iu )0 0 0 0 1 2 3 4 5
oss of Pre iu )3(5 2(5 1(5 0(5 0 0 0 0 0
oss of Pre iu )3 2 1 0 0 0 0 0 0
+$1()), +$1()), +$1()), +$1()), +$0()), $0(01 $1(01 $2(01 $3(01$2(07 $1(07 $0(07 +$0()3, +$1(43, +$1(43, +$1(43, +$1(43, +$1(43,$1( 0 $0( 0 +$0(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20,
+$1()), +$1()), +$1()), +$1()), +$0()), $0(01 $1(01 $2(01 $3(01$2(07 $1(07 $0(07 +$0()3, +$1(43, +$1(43, +$1(43, +$1(43, +$1(43,$1( 0 $0( 0 +$0(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20,$1( +$0(12, +$2(12, +$4(12, +$3(62, +$2(62, +$1(62, +$0(62, $0(3
C art !itle
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Str#p
Page 32
$19 $20 $21 $22 $23 $24 $25
put ,o g put ($1.99) $4.07
Strateg' Pa'o
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Strap
Page 33
Contant Inputs (For Modeling purposes, Stock Price is Constant for allStock 20Volatility 20%Riskless rate 4%
Future Stock PricStock Price Long $15 $16
20 1 -5 -4
Strike Call Long !i"e ption Pa!o" (#1st ption 20 1 1 1 0 0
Strike Call Long !i"e ption Pa!o" (#%nd ption 20(5 1 1 1 0 0
Strike P.t Long !i"e ption Pa!o" (#&rd ption 20 0 1 1 5 4
ption Pre iu s (calculated belo') #et tion Payo&s'irst ($1 ) +$1()), +$1()),Secon* ($1 - ) +$1(74, +$1(74,
! ir* ($1 %*) $3( 0 $2( 0
rading Strategies
Long call +$1()), +$1()),Long call +$1(74, +$1(74,Long .t $3( 0 $2( 0
Strategy Payo& $0(0 +$0()2,
'irst*1 0(3*2 0(10call +c, $1
.t + , $1 %*Secon*
*1 0(176536)
$2.00
$4.00
$6.00
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Strap
Page 34
*2 +0(02,call +c, $1 -
.t + , $1 & ! ir*
*1 0(3*2 0(10call +c, $1
.t + , $1 %*
$17 $18($6.00)
($4.00)
($2.00)
$0.00
,o g al l ,o
$3.80 $0.
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Strap
Page 35
Strategies, but Strike Price Varies)
e$17 $1 $1) $20 $21 $22 $23 $24 $25
-3 -2 -1 0 1 2 3 4 5
oss of Pre iu )0 0 0 0 1 2 3 4 5
oss of Pre iu )0 0 0 0 0(5 1(5 2(5 3(5 4(5
oss of Pre iu )3 2 1 0 0 0 0 0 0
+$1()), +$1()), +$1()), +$1()), +$0()), $0(01 $1(01 $2(01 $3(01+$1(74, +$1(74, +$1(74, +$1(74, +$1(24, +$0(24, $0(76 $1(76 $2(76$1( 0 $0( 0 +$0(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20,
+$1()), +$1()), +$1()), +$1()), +$0()), $0(01 $1(01 $2(01 $3(01+$1(74, +$1(74, +$1(74, +$1(74, +$1(24, +$0(24, $0(76 $1(76 $2(76$1( 0 $0( 0 +$0(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20, +$1(20,
+$1()2, +$2()2, +$3()2, +$4()2, +$3(42, +$1(42, $0(5 $2(5 $4(5
C art !itle
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Strap
$19 $20 $21 $22 $23 $24 $25
g all ,o g put ($1.99) ($1.74)
8 Strateg' Pa'o
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