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root strategies

Root Strategies: Final Review

Recap concepts related to risk profiles and single-leg strategies

Shares

Long

  • Long shares represent ownership of an asset
  • Long shares carry positive delta
  • Long shares have limited risk
  • Long shares have unlimited profitability
  • Long shares have ≈50% POP

Short

  • Short shares carry negative delta
  • Short shares are closed by buying shares
  • Short shares are borrowed and accrue interest charges
  • Short shares have unlimited risk
  • Short shares have limited profitability
  • Short shares have ≈50% POP

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root strategies
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