Options Strategies
Free CFA Level III: Private Wealth lesson in Derivatives & Risk Management. 31 min read, ~4,655 words.
Covered call = long stock + short call: caps upside, earns premium, does NOT hedge downside (payoff identical to a short put). Protective put = long stock + long put: sets a floor, preserves unlimited upside, costs the premium (breakeven = stock price + premium). Collar = long stock +...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- options strategies
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