FIN 376: Trading Assignment -- 11/19/2014

Trade the following stock option spreads.  You can either long or short each spread.  Record what contracts you traded, the prices, whether you bought/sold them, and ultimately whether you are long/short the underlying stock or the stock's volatility.  Upload this to dropbox.  We'll close out of the trades next week and record our profit/loss.

Make sure you use a different underlying stock for each spread trade.  Lastly, pay attention to the bid/ask (and the volume of trading) in your options. You generally don't want to trade very illiquid options.

1.  Trade a butterfly spread.

2.  Trade one of the following: bull call, bear call, bull put, or bear put spread.

3.  Trade a straddle.

4.  Trade a covered call.

5.  Trade a protective put.