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The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies
book

The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies

by Guy Cohen
April 2005
Beginner
400 pages
8h 19m
English
Pearson
Content preview from The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies

Chapter 1. The Four Basic Options Strategies

Introduction

The easiest way to learn options is with pictures so that you can begin to piece together strategies step-by-step. However, first we need to understand the four basic strategies. From that point, logic kicks in, and our learning can progress exponentially.

A risk profile chart shows us our profit/loss position for each trade. It differs from a standard price/time chart that we're used to seeing to monitor stock prices.

There are four easy steps to creating a risk profile chart:

Step 1. Y axis for profit/loss position

Image

Step 2. X axis for underlying asset price range

Step 3. Breakeven ...

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Publisher Resources

ISBN: 0131710664Purchase book