Options Strategies — Flashcards

Q: Are Options Strategies flashcards free on Oncourse?

Yes, completely free. You can study all 45 Options Strategies flashcards on this page at no cost. For spaced repetition scheduling and progress tracking, download the Oncourse app.

Q: How do flashcards help with CFA preparation?

Flashcards use active recall — instead of passively re-reading notes, you retrieve information from memory. Research shows this builds stronger, longer-lasting memories and is one of the most effective study strategies for medical exams like CFA.

Q: How many Options Strategies flashcards are available?

There are currently 45 flashcards for Options Strategies under Derivatives and Risk Management (Level III), organised by chapter. New cards are added regularly to cover the latest CFA syllabus.

Q: Can I study Options Strategies flashcards by chapter?

Yes. The flashcards are organised by chapter so you can focus on specific areas or work through the entire topic systematically. Scroll down to the "Study by Chapter" section to pick a chapter.

Q: What topics do these Derivatives and Risk Management (Level III) flashcards cover?

The cards cover high-yield concepts, clinical correlations, diagnostic criteria, treatment protocols, and commonly tested facts from Options Strategies. They mirror the depth and style of CFA questions.

Options Strategies CFA Flashcards - Medical Study Cards

Master Options Strategies with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.

Options Strategies Flashcard Deck - 10 Cards

Flashcard 1: Constant-Proportion Strategies

Answer: - Dynamic strategy - Buy as prices go up, sell as they go down - Target investment in stock = m x (portfolio value - floor value) - Where m > 1 - Performs well in trending markets and poor in mean reverting markets - Produces convex payoff curve

Flashcard 2: Interest Rate Floors

Answer: - An Interest Rate Floor is a combination of interest rate put options - The natural user of a floor is the receiver on a floating rate loan

Flashcard 3: Vega and Volatility Risk

Answer: Vega = (Change in Option/Change in Vol of Underlying) - At-the-money option has greatest Vega - Volatility is unobservable so it is difficult to estimate Vega - Delta is required to manage Vega risk jointly with delta & gamma

Flashcard 4: Lending and Interest Rate Put Options

Answer: A put establishes a minimum lending rate ![](https://ylbwdadhbcjolwylidja.supabase.co/storage/v1/object/public/anki-flashcards/system/cfa-l3-main/45efddbd9e535231/1785e99766bfa0309b32207e94779ad9ac7330c38fbea0527ae7ad308998aa61.jpg) Payoff = (NP)[max(0, Strike - LIBOR)](D/360) FV(premium) = premium[1 + (current LIBOR + spread)(maturity/360) **Net Amount = Loan + FV(premium)** Effective Interest Earned = Lending Income + Put Payoff EAR = [(NP + Effective Dollar Interest Earned) / Net Amount]^(365/D) - 1

Flashcard 5: Interest Rate Collar

Answer: - A combination of a cap and a floor where the agent is long in one position and short in the other - Attractive to a bank that has among its liabilities large deposits with floating interest rates

Flashcard 6: Gamma

Answer: Gamma = (change in Delta)/(change in Underlying) - Measures the sensitivity of delta to a change in the underlying - Highest when option is at the money/or near expiration - When gammas are large, some delta hedgers choose to also gamma hedge

Flashcard 7: Delta Hedging

Answer: Delta Hedging is combining an option position with a position in the underlying asset to form a portfolio whose value does not change in reaction to changes in the underlying over short periods of time. Buy (sell) delta number of shares for each short (long) position. - Delta is an approximation for small changes only - Delta changes with time and with the price of the underlying - Rounding causes imprecission Deltacall = (Change in Call/Change in Spot) Delta Hedges need to be constantly rebalanced

Flashcard 8: Gamma and the Risk of Delta

Answer: Gamme = (Change in Delta/Change in Spot) - Larger the gamma, greater the risk - Gamma is largest for at-the-money and/or near expiration - Gamma hedge = position in underlying & position in two options

Flashcard 9: Interest Rate Cap

Answer: - Interest rate cap is a combination of interest rate calls - Each option in a cap is a caplet - Each caplet has same X but its own expiration date - Cap seller makes payment if IR \< strike rate - Payoff is determined on its expiration date but made on the next payment date

Flashcard 10: Delta-Normal VaR

Answer: When a portfolio contains options the assumption of a normal distribution to estimate VaR presents a significant problem. One solution is to use the Analytical Method and to assume that the change in the option price is equal to the change in the underlying price multiplied by the delta. This trick converts it into a normal distribution.

Keywords: Options Strategies flashcards, medical flashcards, NEET PG preparation, USMLE Step 1 flashcards, Anki alternative, spaced repetition medical, Oncourse flashcards

Study by Chapter

Replicating asset returns with options

Flashcards

Covered call: structure, payoff, max profit, max loss, breakeven

Flashcards

Protective put: structure, payoff, max profit, max loss, breakeven

Flashcards

Bull spread, bear spread, straddle and collar

Flashcards

Delta of covered call and protective put positions

Flashcards

Calendar spreads

Flashcards

Long call vs short put against a short underlying position

Flashcards

Volatility skew and smile

Flashcards

Selecting strategies to fit stated objectives

Flashcards

Options for targeted equity risk exposures

Flashcards

About Options Strategies Flashcards for CFA

These Options Strategies flashcards are designed for CFA Derivatives and Risk Management (Level III) preparation, using active recall to help you retain high-yield concepts, clinical correlations, and commonly tested facts. Each card prompts you to retrieve information from memory rather than passively reviewing notes, which research shows leads to significantly better exam performance.

The 45 cards in this deck cover the most important topics in Options Strategies, including key mechanisms, diagnostic criteria, treatment protocols, and clinical pearls that frequently appear in CFA examinations. Cards are organised by chapter so you can focus on specific areas or work through the entire topic systematically.

For personalised spaced repetition scheduling that adapts to your performance, unlimited flashcards, and detailed progress analytics, download the Oncourse app.

Frequently Asked Questions

Are Options Strategies flashcards free on Oncourse?

Yes, completely free. You can study all 45 Options Strategies flashcards on this page at no cost. For spaced repetition scheduling and progress tracking, download the Oncourse app.

How do flashcards help with CFA preparation?

Flashcards use active recall — instead of passively re-reading notes, you retrieve information from memory. Research shows this builds stronger, longer-lasting memories and is one of the most effective study strategies for medical exams like CFA.

How many Options Strategies flashcards are available?

There are currently 45 flashcards for Options Strategies under Derivatives and Risk Management (Level III), organised by chapter. New cards are added regularly to cover the latest CFA syllabus.

Can I study Options Strategies flashcards by chapter?

Yes. The flashcards are organised by chapter so you can focus on specific areas or work through the entire topic systematically. Scroll down to the "Study by Chapter" section to pick a chapter.

What topics do these Derivatives and Risk Management (Level III) flashcards cover?

The cards cover high-yield concepts, clinical correlations, diagnostic criteria, treatment protocols, and commonly tested facts from Options Strategies. They mirror the depth and style of CFA questions.

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