Modulating option strategies for better, faster comprehension
The Building Blocks
All option strategies are made up of a few basic building blocks. By understanding these basics, you can analyze and understand virtually any option strategy, no matter its complexity. You will be able to decipher where the profit zone(s) are, where the risks lie, as well as estimate the probability of profit. You will also have a stronger ability to judge how the value of the position should change with respect to varying factors such as time, share price, and In this section, we will learn to analyze risk profiles of basic strategies so you can understand exactly how they work. Let's get started!