Chapter 6: Basic Option Strategies

For each of the strategies you should be able to calculate: a. Initial investment. b. Breakeven Price(s). C. Max loss in $ and % and % move to max loss d. Max gain in $ and % and % move to max gain. e. Payoffs from strategy at different stock prices. 1. Create a covered call with a strike of $100 and expiration of 1/19/2018 Covered Call Buy Stock Write Call -96.69 13.5 100