Advanced
Diagonal spreads and the poor man’s covered call
A diagonal call spread uses different strikes and expirations. Replacing shares with a long dated call creates risks that a covered call label can obscure.
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Options Trading Guide
Understand calls and puts, analyse option prices and build strategies for direction, income and protection. Follow ten stages from contract basics to advanced structures and disciplined trade management.
Start with Calls and puts from both sides of the contract, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
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Advanced Option Structures · All lessons
Advanced Option Structures
Examine ratios, diagonals, synthetic exposure and financing structures.
Advanced
Ratio spreads backspreads and unequal contract counts
Unequal contract counts can create exposures that a familiar spread name hides. Count the contracts and inspect every price region before trading a ratio structure.
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Advanced
Synthetic stock and the limits of put call parity
A call and put can reproduce a stock like terminal payoff. Similar payoff shapes do not make their cash flows, rights and funding requirements identical.
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Advanced
Box spreads as financing rather than free money
A box spread packages a fixed terminal difference using four options. Its practical purpose is financing, with execution, collateral and settlement constraints.
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