back

root strategies

Root Strategies: Final Review

Recap concepts related to risk profiles and single-leg strategies

Miscellaneous Things To Remember

  • Short option sellers have an obligation to fulfill shares at the strike price, if assigned
  • Long options give the buyer the right, not the obligation, to buy/sell shares at the strike price
  • Generally, we would only buy options to limit the risk of our short options
  • We would not buy long options as a stand-alone strategy

back

root strategies