Options Trading, Finance And Accounting

Question: What is the most classic type of options trading?
A
Using sophisticated techniques such as Iron Condor

B
Short selling stocks

C
Buying call options and selling after an increase in value

D
Selling naked call options

Note: Answer not sure
1. Report
Question: Which of the following is the optimal situation?
A
Selling uncovered calls and having the stock price rise

B
Limiting downsize risk while having the most upside potential possible

C
Short selling stocks and having the price of the stock rise

D
Trading options with late expiration dates

Note: Answer not sure
1. Report
Question: What is the purpose of using screening factors?
A
They help focus in on a specific industry.

B
They guarantee against any losses.

C
They help investors decide when to exit an investment.

D
They are preset criteria that any investment must meet before an investor will consider it a viable investment.

Note: Answer not sure
1. Report
Question: When would someone most likely place a stop loss order?
A
When they own options which are out of the money and close to expiration

B
When they are short selling stocks

C
When they have sold substantial amounts of put options

D
When they own deep in the money call options

Note: Answer not sure
1. Report
Question: What is a covered call?
A
Selling put options

B
Short selling stocks

C
Selling a call option when the underlying stock is not owned

D
Selling a call stock option when the underlying stock is owned

Note: Answer not sure
1. Report
Question: What is an options contract?
A
Another term for stock

B
A contract to buy or sell a stock at a predetermined price

C
Insurance

D
A contract with your broker to buy and sell stocks

Note: Answer not sure
1. Report
Question: What should a trader do if one portfolio is outperforming the others?
A
Sell off all stock in the worst portfolio.

B
Switch the portfolios around so they all have the same return.

C
Depends on the goals of each portfolio; they could still all be meeting expectations.

D
Do extensive analysis on the stocks.

Note: Answer not sure
1. Report
Question: How does selling options help someone with their portfolio?
A
It creates additional risk.

B
They can profit from the sale of options without having to cover them.

C
It guarantees small profits.

D
It forces the market price of the underlying stock up.

Note: Answer not sure
1. Report
Question: Why would someone buy call options at the same strike price but stagger the expiration date?
A
Because they believe there will be an upward movement in the price but are uncertain of the timing

B
Because they believe there will be an upward price movement but not for six months

C
Because they believe there will be a downward price movement but are uncertain of the timing

D
Because they believe there will be a downward price movement six months from now

Note: Answer not sure
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Question: What is a "straddle"?
A
Selling the underlying stock of an option

B
Holding both a call and a put at the same strike price

C
Watching the market to see what it will do

D
Holding both a call and a put at different strike prices

Note: Answer not sure
1. Report

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Question: What is the most classic type of options trading?

Question: Which of the following is the optimal situation?

Question: What is the purpose of using screening factors?

Question: When would someone most likely place a stop loss order?

Question: What is a covered call?

Question: What is an options contract?

Question: What should a trader do if one portfolio is outperforming the others?

Question: How does selling options help someone with their portfolio?

Question: Why would someone buy call options at the same strike price but stagger the expiration date?

Question: What is a "straddle"?