Option Trading Levels and Leverage
- Covered Call Writing
- Cash Secured Put Writing
- Buying Puts & Calls
- Includes Level 1
- Combinations (Spreads, Straddles)
- Includes Level 2
- Selling Uncovered Puts
- Includes Level 3
- Selling Uncovered Equity Puts & Calls
- Includes Level 4
- Selling Uncovered Equity/Index Puts & Calls
- Includes Level 5
To paraphrase the question asked:
My reply:
Leverage:
Simple example:
One more thing:
Synthesize” cash-secured put selling? Here’s how
Summary:
Options involve risk and are not suitable for all investors. Click here to review the Characteristics and Risks of Standardized Options brochure before you begin trading options. Options investors may lose the entire amount of their investment in a relatively short period of time.
additional risks and multiple commissions