Options Strategies - Part II: Covered Call, Protective Put, and Spreads (2024 Level III CFA® - R7)

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Topic 3 - Derivatives and Currency Management
Reading 7 - Options Strategies - Part II: Covered Call, Protective Put, and Spreads
LOS : Discuss the investment objective(s), structure, payoff, risk(s), value at expiration, profit, maximum profit, maximum loss, and breakeven underlying price at expiration of a covered call position.
LOS : Compare the delta of covered call and protective put positions with the position of being long an asset and short a forward on the underlying asset.
LOS : Compare the effect of buying a call on a short underlying position with the effect of selling a put on a short underlying position.
LOS : Discuss the investment objective(s), structure, payoffs, risk(s), value at expiration, profit, maximum profit, maximum loss, and breakeven underlying price at expiration of the following option strategies: bull spread, bear spread, straddle, and collar.
LOS : Describe uses of calendar spreads.

[@supasetsothonsirimongkol9328]

around 18.11 there is a short of 50 ATM call option thus why not the answer is +100 - 0.5(50) then it is +75 for the delta of port

[@matthewhanson3345]

1 call = 100 shares
1 short call = -100 delta
ATM delta = .5 so for the incremental/marginal price chg. that position is going to move like (-100 x .5) = -50 shares, sold short. +100 - 50 = net +50 position delta

[@abdullahnarejo1259]

why are you selling an out of money call option in zero collar stragety?

[@kavitabatra4537]

Can someone explain collar strategy

[@abdullahnarejo1259]

sir easy with if formulas are given. Complex without formulas.