Appendix I. Strategy Table

StrategyExecutionBenefitsDisadvantagesComponent PartsRisk Profile
Long CallBuy a call.Capped risk; uncapped reward; better leverage than stock purchase.Can lose entire stake if the call expires OTM (out of the money).
Long PutBuy a put.Capped risk; uncapped reward; better leverage than straight stock shorting.Can lose entire stake if the put expires OTM (out of the money).
Short Call (naked)Sell a call.Shortterm income strategy. ...

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