Here is how I think about calls and puts. I hope this description is easy for you to understand and remember. Once you feel like you have a good grasp on what is happening, start practicing payoff graphs. If you can quickly graph the payoff for written and purchased calls and puts, it will make all those option positions (stradles, strangles, spreads, etc.) much easier to remember!
Intro to Calls and Puts
No comments:
Post a Comment