2009-08-16

TRUE OR FALSE

If you can answer all questions correctly, you know your stuff well

1. Being assigned on a short option causes you to lose money.

2. Being assigned increases your risk.

3. The use of market orders is discouraged because market makers will move the market when they see your order.

4. Market makers match buyers with sellers.

5. Implied volatility is based directly off of the historical volatility.

6. Open interest is important.

7. Daily option volume is important.

8. Credit spreads and debit spreads are the same thing.

9. Market makers purposely over/undervalue options from time to time.

10. Risk free trades can be created and opened in one trade.


Source:
http://www.optionetics.com/forums/topic.asp?fid=136&id=51766&page=6


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