tailieunhanh - The Equity Options Strategy Guide

The purpose of this booklet is to provide an introduction to some of the basic equity option strategies available to option and/or stock investors. Exchange-traded options have many benefits including flexibility, leverage, limited risk for buyers employing these strategies, and contract performance guaranteed by The Options Clearing Corporation (OCC). Options allow you to participate in price movements without committing the large amount of funds needed to buy stock outright. Options can also be used to hedge a stock position, to acquire or sell stock at a purchase price more favorable than the current market price, or, in the case of writing (selling) options, to earn premium income. Options give you options. You’re. | THE EQUITY OPTIONS STRATEGY GUIDE JANUARY 2001 Table of Contents Introduction 2 Option Terms and Concepts 4 What is an Option 4 Long 4 Short 4 Open 4 Close 5 Leverage and Risk 5 In-the-money At-the-money Out-of-the-money 5 Time Decay 6 Expiration Day 6 Exercise 6 Assignment 6 What s the Net 7 Early Exercise Assignment 7 Volatility 7 Strategies 8 Long Call 8 Long Put 10 Married Put 12 Protective Put 14 Covered Call 16 Covered Put 18 . Bull Call Spread 20 Bear Put Spread 22 Collar 24 Glossary 26 For More Information 28