Test 3 Which Options to Use

Call Backspread

best used when implied vols are low and expected to expand

Synthetic Straddle

the investor expects a big move in the underlying stock, but isn't sure which way.

Put Backspread

work out great as volatility typically expands as stocks drop in price

Synthetic Put

Bearish strategy where the investor is bearish on the underlying instrument, but wants to hedge the risk of being wrong.

Zero Cost Collar

Hedge against volatility and stock will rise in price

Synthetic Long

Investor wants to create a long position in TSLA stock but sadly lacks the necessary capital

Synthetic Short

Investor wants to short TSLA, but the short interest is already pretty high and the investor is concerned that the stock will become harder, or at least more expensive, to borrow in the weeks ahead