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# Category: Level III Derivatives

## Protective Put

If you haven’t read the article on option strategies in general, that’s a good place to start, then return here. In particular, if you haven’t read the warning about calculating profit that appears at the end of that article, you should go read it now; the way I’m calculating the profit here is correct, but…

## Long Bullish Seagull Spread

If you haven’t read the article on option strategies in general, that’s a good place to start, then return here. In particular, if you haven’t read the warning about calculating profit that appears at the end of that article, you should go read it now; the way I’m calculating the profit here is correct, but…

## Seagull Spreads

The reading on currency management briefly mentions seagull spreads, and suggests that there are two types: long seagull spreads and short seagull spreads. Apart from the fact that there are actually four types of seagull spreads (I’ll get to them in a moment), the biggest problem is that they never show a payoff diagram for…

## Delta Hedging

There are two applications of delta hedging presented in the CFA curriculum: You have an existing position in the underlying security and you want to hedge that position with options. You have an existing position in options and you want to hedge that position either with the underlying security or with options. I’ll cover both…

## Box Spread

If you haven’t read the article on option strategies in general, that’s a good place to start, then return here. In particular, if you haven’t read the warning about calculating profit that appears at the end of that article, you should go read it now; the way I’m calculating the profit here is correct, but…

## Strangle

## Straddle

## (Equity) Collar

## Butterfly Spread

## Bull Spread