Chapter 02 · Section 2.1

Profit/Loss Diagrams for Basic Option Positions

  1. 1Profit/Loss Diagrams for Basic Option Positions
  2. 2Profit/loss diagrams are used to:
  3. 3Vertical axis on the profit/loss diagram
  4. 4The horizontal axis on the profit/loss diagram
  5. 5Profit or loss on a per share basis
  6. 6The loss if the stock trades below $30
  7. 7Price of the underlying asset
  8. 8Long put position
  9. 9Short Call Position
  10. 10Position Summary