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root strategies

Root Strategies: Final Review

Recap concepts related to risk profiles and single-leg strategies

How to Read a Risk Profile

  • Risk profiles visually depict risk and reward with respect to share price
  • Stock, Puts, and Calls each have their own symbol
  • Red symbols mean short, green symbols mean long
  • P/L is measured vertically along the Y-Axis
  • Price change and Delta are along the X-axis
  • 1 standard deviation contains about 68% of variations

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root strategies