Do you know options trading strategy?

See how you stack up by taking this simple quiz

Use the following clues to guess the strategy:

  1. I can be done in a cash or margin account.
  2. Employ me if you are already long a stock and looking to get out at a higher price.
  3. I am one of the few “short” trades which when you sell me you generate additional Buying Power.
  4. My premium can offset a loss from a small move lower in your stock price.
  5. My premium plus the difference between my strike and the current stock price is your maximum potential gain.