[QUIZ] Unlock the Power of Options - Session 5

Complete the quiz below to test your understanding after our Options 5th Session
Missed the session? Watch the replay here: moomoo.com/comm...

1. Which of the following are true about selling naked options?

i. Sellers have the rights to buy or sell the underlying stocks.
ii. It exposes the seller to huge or unlimited loss.
iii. A naked call means selling the call option without owning the shares.
iv. Sellers of the options can only make up to the premium collected.

a. i, ii and iii
b. ii, iii and iv
c. ii and iii
d. All of the above

2. The margin requirement for short options is not just big, but sensitive to market changes which may trigger a margin call (forced sell by broker).

a. TRUE
b. FALSE

3. What does the Bull Put Credit Spread entails?

a. Buy a Call and sell a put with the same strike price.
b. Buy a put and sell a put with a lower strike price.
c. Sell a put and hold cash.
d. Sell a put and buy a put with a lower strike price.

4. Which of the following is true about the Bull Put strategy?

i.This is a net credit strategy- we receive premium upfront.
ii.We can win in multiple directions- sideways and up. Higher chance of success.
iii.The sell leg limits the loss of this strategy.
iv.Gains are capped by the premium collected. Unable to fully benefit even if the stock becomes very bullish.

a. All of the above
b. i, ii and iv
c. ii, iii and iv
d. ii and iv

5. Assume we did the following Bull Put spread on ABC stock:-

Sold a $150 strike put with 1 month to expiry @ premium of $4.40.
Bought a $145 strike put with the same expiry @ premium of $2.50.
What is the maximum risk of this bull put spread?

a. $1.90
b. $5
c. $2.50
d. $3.10

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