1. VIII: Options 25: Options Strategies

2. Chapter 25: Options Strategies © Oltheten & Waspi 2012 Strategies  Shares Options Strategies combine one or more  Shares  Calls  Puts

3. Chapter 25: Options Strategies Shares Long Short © Oltheten & Waspi 2012

4. Chapter 25: Options Strategies Calls © Oltheten & Waspi 2012 LongShort

5. Chapter 25: Options Strategies Puts © Oltheten & Waspi 2012 Long Short

6. Chapter 25: Options Strategies © Oltheten & Waspi 2012 Covered Call:  Short $40 March GE Call @ $2.50  Long 100 GE Shares @ $40

7. Chapter 25: Options Strategies Short $40 March GE Call @ $2.50 © Oltheten & Waspi 2012 $250

8. Chapter 25: Options Strategies Long 100 GE Shares @ $40 © Oltheten & Waspi 2012

9. Long Shares -$4000 Short $40 Call $250 Covered Call -$3,750

10. Chapter 25: Options Strategies © Oltheten & Waspi 2012 Bear Spread:  Short $30 March GE Call @ $10.20  Long $40 March GE Call @ $2.50

11. Long $40 Call -$250 Short $30 Call $1,020 Bear Spread

12. Chapter 25: Options Strategies Bear Spread © Oltheten & Waspi 2012

13. Chapter 25: Options Strategies © Oltheten & Waspi 2012 Bear Spread  -100 (P-$30) + $770 = $0  P= $37.70

14. Chapter 25: Options Strategies © Oltheten & Waspi 2012 Bear Spread  Is there a breakeven price >$40?  -100 (P-$30) + 100 (P-$40) + $770  -100P + $3000 + 100P - $4000 +$770  -$230

15. Chapter 25: Options Strategies Bear Spread © Oltheten & Waspi 2012 $770 -$230

16. Chapter 25: Options Strategies © Oltheten & Waspi 2012 Bull Spread:  Long $40 March GE Call @ $2.50  Short $50 March GE Call @ $0.15

17. Short $50 Call +$15 Long$40 Call -$250 Bull Spread -$235 $765

18. Chapter 25: Options Strategies Bull Spread © Oltheten & Waspi 2012

19. Chapter 25: Options Strategies © Oltheten & Waspi 2012 Bull Spread  100 (P-$40) - $235 = $0  P= $42.35

20. Chapter 25: Options Strategies © Oltheten & Waspi 2012 Butterfly Spread  Long 1 $35 June GE Call at $6.70  Short 2 $40 June GE Calls at $3.80  Long 1 $45 June GE Call at $1.75

21. Chapter 25: Options Strategies Butterfly Spread © Oltheten & Waspi 2012

22. Chapter 25: Options Strategies Butterfly Spread © Oltheten & Waspi 2012 -$85

23. Chapter 25: Options Strategies Write (Short) Straddle © Oltheten & Waspi 2012

24. Chapter 25: Options Strategies Buy (Long) Straddle © Oltheten & Waspi 2012

25. Chapter 25: Options Strategies Synthetic Stock  Use options contracts to synthesize a long position in the stock © Oltheten & Waspi 2012 Long 100 GE @ $40

26. Options II