Pop Quiz #1 had a narrative list question and Pop Quiz #2 had six multiple choice questions.
So, to continue with a variety of quiz types, Pop Quiz #3 below has ten fill-in-the-blank questions.
I will post my answers to each of these on Wednesday this week.
In the mean time, please email me at partlow@cox.net with your answers and I will send you a reply with the correct answers.
1. Another name for Covered Calls is ___________________.
2. Each Call option represents how many shares? _______
3. The Call owner has the right to buy. The Call seller has the ____________ to sell.
4. When the Call owner exercises their Call option, the Call seller must ___________________.
5. You established a Covered Call by buying 100 share of XYZ at $102 and sold a $100 Call option at $4 premium. The net profit if assigned at expiration (excluding commissions) is $_______.
6. If you make a $200 net profit on a $10,000 investment in exactly one month, your annualized return-on-investment is ______%.
7. The closer to the options expiration date we get, the rate of an option's time value decay (increases, decreases, or stays the same)?
8. To roll out a current Covered Calls position to a future Covered Calls in the same stock, a single ____________ transaction is made.
9. An out-of-the-money Call option has only __________ value.
10. Before entering a Covered Calls position on stock XYZ, the best way to compare potential financial results in positions with differing expiration dates is by calculating their ____________________________.
Best Wishes,
Jeff
