Max potential loss of spread trade question. Options trading.? related questions

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Max potential loss of spread trade question. Options trading.?0amna2012-09-02 13:49:02
Hi guys , I have this question in a practice test for the number 56 which does not give answers . Does anyone know the answer to this question: MedlinePlus MedlinePlus 10. What is the maximum potential loss at maturity for the following spread trading ? MedlinePlus MedlinePlus Long 1 XYZ 50 [email protected] MedlinePlus Short 1 XYZ 55 [email protected] MedlinePlus MedlinePlus MedlinePlus MedlinePlus A. MedlinePlus 1.50 B. MedlinePlus 2.50 C. MedlinePlus 3.50 D. MedlinePlus 4.50 I hope someone can help me . Thank you !
Bull Put Vertical Options Spread Question from Iraq?1Shelley2012-09-10 16:35:03
Ok , so I've been trying to educate myself on the vertical margins in my free time here in Iraq . And there are a couple of things I can not get my head around . MedlinePlus I'll use as an example AAPL : MedlinePlus currently trading at $ 99, so you sell a put at $ 95 and buy a put option at $ 90 . And while the underlying stays above 95 , a lot of money for me . MedlinePlus but what I'm not understanding is the potential loss . I have to buy the $ 90 put to limit the loss , but I do not understand how it works. for example, if AAPL goes to $ 93, and my buyer makes selling $ 95, $ 90 from my post is not in the money, do not I have to pay for the shares in the same manner as if naked ? MedlinePlus Moreover, if AAPL is below $ 90, exactly how I can use this to limit my loss ? I can practice how to sell AAPL to $ 90 if AAPL never had to begin with? MedlinePlus MedlinePlus Thanks for the help MedlinePlus Semper Fidelis
Whats better to trade FX with out of options, spread betting or spot trading? Whats best for UK resident?1TYRONN2012-11-04 21:51:02
Currently at the time of writing I am 18 years of age and I have been practicing stock, commodity and currency trading in several different practice accounts. What I have discovered is that I am best at currency trading and I make the most money out of trading that way. With stocks and commodities I have had moderate successes but I'm better at FX trading than anything else and I've learned a lot too. I also know that currency tends to trend long term such as a few months to a few years which is where currency options are best suited. Spot-forex trading on the other hand is traded on margin and is best suited to short term trading of the FX markets. I have only had practice trading FX in spot-forex and spread betting, both of which had a return of several hundred percent. What I would like to know is what is the best way to trade forex out of currency options, spread betting or spot FX, and which is best suited to a UK resident to gain wealth? Please help/advise. Thanks. P.S. Sorry its so long.
Bear call credit spread on options trade on LULU?1madzia2012-09-14 18:54:06
Short MAR 62.50 . Long MAR 67.50 . Credit of $ 1.23. I had hoped that the act of filling the void and then when I did not roll the trade maturity due in February March. I'm still waiting for the gap to be filled, but the payoff is March 8 . Any suggestions ?
How difficult is it to trade stock options online for a beginner and what is the profit potential?4? hate you love me 〆2012-11-03 00:28:01
How hard is stock options trading online for a beginner and what is the profit potential ?
What is spread trading? How/Why is it better than regular trading? Why should I spread trade equities?0y9122012-08-04 07:07:02
I have the intention to use the software spread trading is hitting new markets in India soon and let me know if it's worth .
Is it possible to trade penny stocks and Options derivatives using spread betting? Please answer. Thanks.?0Draco2012-10-06 00:35:32
I wonder if it is possible to negotiate with penny stocks and derivatives also use options spread betting ? Please answer to the best star best answer . Thank you.
OPTIONS TRADING...Help, Help! I have two trades on, but I did not do a spread....Dumb!!?0biggie2012-08-09 17:45:42
I hope you will help me explain a costly problem I have, and this is not the year to lose money. So, that said ... I bought the June calls ITM ITM Visa and Wynn starts in June. Yes, one of the leading positions and I know I should have made at least one vertical extension in place. So if you could give me your idea (s) as to what moves counter to do. Put / call strangle, butterfly, or the sale of the money calls? Wynn and then sell a strike lower than the $ 70.00 strike I have now. Or in the leg in July, with sales calls, don? with legging on a calendar? Maybe? Maybe not? I'm learning a lot during his participation in the classes I'm enrolled in the University of options. A good team of trainers. Also I have the switch TD Amer. also the thinkorswim platform. U Options instructors are giving us a variety of trades in which one could choose. Spreads, and alerts to make adjustments, a leg, roll it up, or roll as they protect the risk reward on the options purchased. I have a good understanding of why and when operations are placed. Interestingly, last Tuesday, I felt we had a little windfall. We were introduced to a new instructor, liked him and he said to his approach to calm down and return to trade some instruction conservative, was this exactly, said one of the offices of direction, that if and when these run counter us, we are taught to see what we have, asses and adjust accordingly. But with the holiday weekend, but ITM options, you can not break anywhere near even Evey, and my new instructor, who seems to be what I, along with many of the ladies of the class (some guys too) will have some good trades with the redefinition of the risk / reward in the options market and the current trade. The time to market and especially with the options is all. The good man enters into the formation and the Laboratory of Commerce for us will not happen until Tuesday after Memorial Day. I want to advance, a sincere thank you, if you decide to give me an idea how to do my analysis below to perform a selection or a play, the concept of viewing the game, and I think I can get the light bulb in my brain that lights up and not be stuck second guessing yourself. Thanks .....
Is trading stock options, (Calls & Puts, etc), a better alternative to trading spread bets in your opinion?1Maple C.2012-10-10 10:22:02
I am a UK based stock investor, have been trading CFD's and spread betting live, and was just wondering if trading stock options, i.e. Calls & Puts, etc would be a better and wiser idea rather than CFD's or Spread bets in your opinion?
What better and safer to trade to build capital to start a business; CFDs, spread betting, options or stocks?0dreww19612012-09-19 04:19:02
I wonder , I'm thinking about starting an internet based business , but do not have sufficient funds nor am a programmer / desiger so I want to pay someone to not only do my projects , but to run the management server for me . I have
What is debit spread and credit spread? in option trading, pls tell me in layman term?0dukegirl2012-10-22 20:44:57
What is the spread of debit and credit spread ? in transactions involving options , pls tell me in layman's term ?
Future spread question?0COFFEE2012-07-31 17:24:02
Future spread: I hear that Future spread traders care more about spread i.e, either widen or tightening than the direction of underlying commodity. Generally there are 2 common Future spreads 1.same commodity in different months (intracommodity spread) 2.different commodity in same month. (intercommodity spread) For Intracommodity spread, If you expect the spread to narrow, sell the more expensive future and buy the less expensive future. If you expect the spread to widen, sell the less expensive future and buy the more expensive future. )))))) Now lets get back to question.He described easily for trading same commodity in different months. Question #1: But, How to use that technique( Based on spread wide or narrow) for different commodities with same month( inter commodity spread)?Please explain clearly as explained above for intracommodity spread...pLease give examples...say june crudeoil and june heating oil like that....How we know, which one to buy and which one to selll? Question #2: Do we need to use crudeoil and heating oil ( or anything related to energy only) for constructing this kind of spread (or) Can we construct using June corn and Jun crude oil?Can we?or should we construct only related commodities? question#3: Can you Please explain to me clearly some dew circumstances when the spread of the Underlying commodity is to widen or tighten?Please make it clearer as much you can..... question #4: Please Give your advice or suggestions for future spread trading? Thank you.

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