Can anyone comment if what i have below is correct please:
Derivative strategies WITH LONG a security:
covered call, protective put, collar, and straddle
WITHOUT going LONG the security:
bull, bear, butterfly, box spread
Yeah. Also remember that in a collar you sell a call at a strike above the price of the stock and buy the put at a strike below the price.
Bull call spread and collar have the same payoffs btw.
A straddle does not involve owning the underlying security.
The rest are correct.
Add strangle to the second list.
thanks to you two!
Dont forget the iron condor
well i did forget about it and did not pay much attention to it haha thanks
If anything, the seagull spread will be on test… or a risk reversal.
Does a collar require a long position? It’s just a long put and short call. If you match the prices, it’s zero-cost.
Yes.
Except that it’s not.
Not just, that is.
There’s also a long position in the underlying.
Yes.