Question: The spread you use if you expected a very large price move of the underlying, but were unsure of the direction is a: Bull call
- The spread you use if you expected a very large price move of the underlying, but were unsure of the direction is a:
- Bull call spread
- Butterfly
- Calendar Spread
- Iron Condor
- Straddle
- The spread you use if you expected the underlying to move in a relatively tight range is a:
- Bull call spread
- Butterfly
- Straddle
- Calendar Spread
- Iron Condor
- This spread exploits the differential in theta between two options:
- Iron straddle
- Short butterfly
- Calendar spread
- Iron Condor
- Call diagonal spread
- This spread creates an immediate but set profit with exposure equal to the amount of spread minus premium:
- Iron straddle
- Short butterfly
- Calendar spread
- Iron Condor
- Call diagonal spread
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