ok ladies- so we have bull call spread, bear put spread, bear call spread, butterfly with calls, butterfly with puts, long straddle, short straddle, collar, and box. anything i’m missing? (like, i’ve never heard of a bull put spread in real life, but i haven’t read CFAI) bear call spread and bear put spread are the same, just with different options, correct? (ie. just reverse Xh and Xl for max profit, etc) what is breakeven for butterfly with puts—do i just use Xh instead of Xl? so Xh plus sum of the premiums AND 2XM-Xh plus the opposite sum of the premiums? for short straddle, max loss should be infinite, max gain should be the sum of the options. is breakeven still the same? believe it is, but just checking for collar—if not a zero-sum collar (i bet money CFAI would do something like this to us), the only thing i would need to adjust is net premium from max profit, max loss, and breakeven. correct? thanks in advance! i just figure CFAI loves to use the opposite of the big examples and want to be prepared. K-Rock
I think you are correct on everything you wrote.
there is a butterfly spread using puts example in one of the blue boxes in the CFAI material, if I remember right
yeah, but the butterfly with puts just shows profit. nothing else in the example. i really hate the schweser reading on options strategies—as they should have identical teaching/solution for each one, but don’t.