Option Strategies  The fundamental of Listed Options  What options are  What makes up an Option  The benefits of Trading options  How rights and obligations are involved with options  What it means to have a long or short position  The core strategies

Long Call Strategy: Long Stock Example: Buy Stock at $50.00 Breakeven Point: $50.00 Maximum Risk: $50.00 Profit Potential: Unlimited

Short Stock Strategy: Short Stock Example: Sell Short Stock at $50.00 Breakeven Point: $50.00 Maximum Risk: Unlimited Profit Potential: $50

Long Call Strategy: Long Call Example: Long Strike $50.00 at $5.00 Breakeven Point: $55.00 Maximum Risk: $5.00 Profit Potential: Unlimited

Short Call Strategy: Sell Short Call Example: Sell Short Strike $50.00 Call at $5.00 Breakeven Point: $50.00 Maximum Risk: Unlimited Profit Potential: $5.00

Long Put Strategy: Long Put Example: Long Strike $50.00 Put at $5.00 Breakeven Point: $45.00 Maximum Risk: $5.00 Profit Potential: $45.00

Short Put Strategy: Short Put Example: Sell Short Strike $50.00 Put at $5.00 Breakeven Point: $45.00 Maximum Risk: $45.00 Profit Potential: $5.00

Long Straddle Strategy: Long Call, Long Put Example: Long Strike $50.00 Call at $5.00 and Put at $5.00 Breakeven Point: $40.00 & $60.00 Maximum Risk: $10.00 Profit Potential: $40.00 or Unlimited

Short Straddle Strategy: Short Call, Short Put Example: Sell Short Strike $50.00 Call at $5.00 and Put at $5.00 Breakeven Point: $40.00 & $60.00 Maximum Risk: $40.00 or Unlimited Profit Potential: $10.00

Long Strangle Strategy: Long Call, Long Put Example: Long Strike $53.00 Call at $5.00 and Strike $50.00 Put at $5.00 Breakeven Point: $40.00 & $63.00 Maximum Risk: $10.00 Profit Potential: $40.00 or Unlimited

Short Strangle Strategy: Short Call, Short Put Example: Sell Short Strike $50.00 Call at $5.00 and Strike $47.00 Put at $5.00 Breakeven Point: $37.00 & $60.00 Maximum Risk: $37.00 or Unlimited Profit Potential: $10.00

Covered Call Strategy: Long Stock, Short Call Example: Buy Stock at $50.00, Sell Short Strike $50.00 Call at $5.00 Breakeven Point: $45.00 Maximum Risk: $45.00 Profit Potential: $5.00

Covered Put Strategy: Short Stock, Long Put Example: Sell Short Stock at $50.00, Long Strike $50.00 Call at $5.00 Breakeven Point: $55.00 Maximum Risk: Unlimited Profit Potential: $5.00

Ratio Call Strategy: Long Call, Short Calls at Higher Strike Example: Long Strike at $50.00 Call at $5.00, Sell Short Strike $ Calls at $1.00 Breakeven Point: $52.00 & $76.00 Maximum Risk: $2.00 & Unlimited Profit Potential: $16.00

Ratio Put Strategy: Long Put, Short Puts at Lower Strike Example: Long Strike at $50.00 Put at $5.00, Sell Short Strike $ Puts at $1.00 Breakeven Point: $24.00 & $48.00 Maximum Risk: $48.00 & $2.00 Profit Potential: $16.00

Bull Call Spread Strategy: Long Call at Lower Strike, Short Call at Higher Strike Example: Long Strike at $45.00 Call at $10.00, Sell Short Strike $65.00 Call at $5.00 Breakeven Point: $50.00 Maximum Risk: $5.00 Profit Potential: $5.00

Bearish Put Spread Strategy: Long Put at Lower Strike, Short Put at Higher Strike Example: Long Strike at $55.00 Put at $10.00, Sell Short Strike $35.00 Call at $5.00 Breakeven Point: $50.00 Maximum Risk: $5.00 Profit Potential: $5.00