Options Quiz 2

A vibrant and illustrative depiction of options trading, showcasing call and put options, stock charts, and traders analyzing market data. The image should convey the dynamic nature of the financial markets.

Options Trading Mastery Quiz

Test your knowledge of options trading with our engaging quiz designed for both beginners and experienced traders. Discover the nuances of implied volatility, time decay, and option pricing strategies.

Evaluate your understanding of key concepts.
Learn about the characteristics of different options.
Enhance your trading skills with practical scenarios.

10 Questions2 MinutesCreated by TradingGuru321

What happens to option price when IV increases?

Increases

Decreases

What happens to option price with passage of time?

Increases

Decreases

Which option is more expensive?

ATM

OTM

ITM

Which option is cheap?

ATM option with 10 days to expiry

ATM option with 5 days to expiry

Which option will lose more money if the market is flat tomorrow and IV is constant? Assume Nifty at 8000

Nifty 8000 CE current month

Nifty 8000 PE next month

Which option will make more profit when Nifty moves up? Assume Nifty at 8000

Nifty 8000 Call Buy

Nifty 8200 Call Buy

Nifty 7800 Call Buy

Nifty 7800 Put Buy

It is a good idea to buy both call and put both before an event, in case the stock moves anywhere

Yes

If you buy weekly options on Friday, you will lose money by Monday if market opens flat

Yes

If you think a Nifty is going to go 3% up in 2 months, which of the following option with two months to expire will you do?

Buy ATM Call

Buy ATM Put

Sell ATM Call

Sell ATM Put

The Theta Decay of a call spread is lower than that of a buy call

True

False

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