This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - A covered call is used to generate income on a long stock position but caps the maximum potential gain. - A protective put acts as insurance for a long stock position, limiting downside risk while retaining unlimited upside potential. - The breakeven for a covered call is calculated by subtracting the premium received from the stock's purchase price. - The breakeven for a protective put is found by adding the premium paid to the stock's purchase price. - A long straddle is a speculative strategy for investors who anticipate high volatility in a stock but are uncertain of the direction of the price movement. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep