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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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