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 you need to understand the four basic strategies. From that point, logic kicks in, and your learning can progress exponentially.
A risk profile chart shows your profit/loss position for each trade. It differs from a standard price/time chart that you’re used to seeing when you’re monitoring stock prices.
There are four easy steps to creating a risk profile chart:
Step 1: Y axis for profit/loss position
Step 2: X axis for underlying asset price range
Step 3: Breakeven ...
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