Options Trading, Finance And Accounting

Question: How is risk measured?
A
By classifying it into one of three levels of risk

B
Individually, each investor assesses their own risk tolerance level

C
As a letter; a,b,c or d

D
Someone else assesses your risk level

Note: Answer not sure
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Question: How does the "Iron Condor" technique limit the downside?
A
The shorted options all have the same strike prices.

B
It is another term for short selling stock.

C
The shorted options have different strike prices, creating a stagger.

D
It involves selling calls while buying calls at the same time.

Note: Answer not sure
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Question: What is candlesticking?
A
Selling stock options without owning the underlying stock

B
Short selling stock

C
A charting technique which shows price movements over time indicating the high and the low daily

D
Owning several options of the same company

Note: Answer not sure
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Question: Which of the following is the most profitable?
A
Deep in the money call options

B
Deep out of the money call options

C
Slightly in the money call options

D
Slightly out of the money call options

Note: Answer not sure
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Question: Why would someone sell call options on a security they own?
A
Because they believe the price will rise

B
Because they don't really own the security

C
Because they are writing naked calls

D
Because they believe the security price will fall, creating profit from the calls

Note: Answer not sure
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Question: Which of the following situations has the least risk?
A
Short selling stock

B
Selling naked put options

C
Selling naked call options

D
Selling covered call options

Note: Answer not sure
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Question: Why would an investor not utilize an options trading strategy?
A
Because they cost money

B
Because of the belief that they do not work, and it is a wasted effort

C
Because not enough data is available

D
Because they are only for the wealthy

Note: Answer not sure
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Question: Which of the following would help protect against downside risk?
A
Only trading call options

B
Only trading put options

C
Always selling options instead of buying

D
Placing a limit order

Note: Answer not sure
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Question: What is meant by "long" in a stock or option?
A
Owning an excessive amount of shares

B
Selling stock options on a security

C
Intention to hold a security for a long period of time

D
Selling a stock without owning it

Note: Answer not sure
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Question: What is the "expiration date"?
A
The date on which the trader's license expires

B
The date on which a broker's account expires

C
The date on which the underlying stock no longer remains tradable

D
The date on which the options contract expires and can no longer be executed or traded

Note: Answer not sure
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Question: How is risk measured?

Question: How does the "Iron Condor" technique limit the downside?

Question: What is candlesticking?

Question: Which of the following is the most profitable?

Question: Why would someone sell call options on a security they own?

Question: Which of the following situations has the least risk?

Question: Why would an investor not utilize an options trading strategy?

Question: Which of the following would help protect against downside risk?

Question: What is meant by "long" in a stock or option?

Question: What is the "expiration date"?