Buying & Selling Options Recap
Test your knowledge of buying and selling options. Select the best answer for each question.
NVDA is at $850. You buy a $900 call for $20. What's your maximum loss?
You sell a META $400 put for $5 when META is at $450. What's your maximum gain?
AAPL is at $170. Which strategy profits from a small rise in the stock?
SPY drops 2% in a day. Which position likely gained value?
TSLA is highly volatile. Which strategy has the WORST risk/reward?
AMD is at $160. You sell a $150 put. What happens if AMD drops to $140?
Which strategy has the highest probability of profit but smallest potential gain?
You're bullish on AMZN but worried about a market crash. Best strategy?