Table of Contents How to use this study Guide p. vii Lesson 1Definitions p. 1 Lesson 2Covered Call Writing p. 9 Lesson 3Call Buying p. 16 Lesson 4Other Call Buying Strategies p. 23 Lesson 5Naked Call Writing p. 30 Lesson 6Ratio Call Writing p. 37 Lesson 7Bull Spreads Using Call Options p. 44 Lesson 8Bear Spreads Using Call Options p. 50 Lesson 9Calendar Spreads p. 54 Lesson 10The Butterfly Spread p. 58 Lesson 11Ratio Call Spreads p. 62 Lesson 12Combining Calendar and Ratio Spreads p. 66 Lesson 13Reverse Spreads p. 70 Lesson 14Diagonalizing a Spread p. 74 Lesson 15Put Option Basics p. 78 Lesson 16Put Option Buying p. 84 Lesson 17Put Buying in Conjunction with Common Stock Ownership p. 89 Lesson 18Buying Puts in Conjunction with Call Purchases p. 93 Lesson 19The Sale of a Put p. 98 Lesson 20The Sale of a Straddle p. 102 Lesson 21Synthetic Stock Positions Created by Puts and Calls p. 106 Lesson 22Basic Put Spreads p. 111 Lesson 23Spreads Combining Calls and Puts p. 116 Lesson 24Ratio Spreads Using Puts p. 121 Lesson 25Long-Term Option Strategies p. 126 Final Examination p. 133 Final Examination Answers p. 163