Spreads, Straddles and Combinations

What this video covers

• How a combination position differs from a spread and a straddle, including the same-option-type rule for spreads and the shared strike and expiration rule for straddles
• How the Chicago Board Options Exchange (Cboe) defines a complex order: different series, the same underlying security or index, the same account, near-simultaneous execution, an investment strategy, and an exchange-set leg ceiling
• How to apply the one-to-three through three-to-one ratio test for options legs and the eight-to-one test for stock-option orders, including the exception for Index Combo orders
• How 10 mini-option contracts and 100 micro-option contracts convert to one standard option contract in mixed orders, and why nonconforming orders lose electronic handling
• How to identify vertical, butterfly, box, calendar, and diagonal spreads, including equal contract counts for box spreads, skewed butterflies, and mixed settlement traps
• How index combos use Delta as a positive or negative count rather than a percentage, plus the SPX 100-leg single-ticket rule
• How multi-class spread orders work with related products such as a broad-based index option and an exchange-traded fund (ETF), including when ticketing affects regulatory relief