Bubba has not existing positions in his account and writes 1 XYZ July 60 put and 1 XYZ July 60 call.
What is this position called?
Suggested Answer: D
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short straddle. A straddle is a put and call on the same stock with the same strike price and expiration date.
12 comments · newest first
ED
Edna
1 year ago
I thought you needed existing positions for that?
EL
Elbert
1 year ago
Nope, it's short straddle for sure.
MA
Marjory
1 year ago
Wait, isn't it a long straddle?
DO
Dorcas
1 year ago
Definitely a short combination.
CH
Chantell
1 year ago
That's a short straddle!
LA
Lashunda
1 year ago
I’m confused; I thought a long straddle involved buying both options. Is this really a short straddle?
ME
Merilyn
1 year ago
I practiced a question like this, and I believe it's a short straddle because he has no existing positions and is writing both options.
CY
Cyril
1 year ago
I'm not entirely sure, but I remember something about combinations. Could it be a short combination?
LA
Lashandra
1 year ago
I think this might be a short straddle since he's selling both a put and a call at the same strike price.
FE
Felix
1 year ago
Okay, let's see here. The issue seems to be related to the firewall configuration, so I'll focus on the options that address that.
BU
Bulah
1 year ago
Okay, let's see. Session duration and listening ports - those are definitely relevant for network profiling. I'm less sure about the other options, but I'll go with those two.
YU
Yun
1 year ago
Hmm, I'm a bit confused by the wording here. I'll need to make sure I understand the concept of service encapsulation before I can confidently answer this.