Home > Articles > Business & Management > Finance & Investing

  • Print
  • + Share This
This chapter is from the book

Memory Tips for Long and Short Calls and Puts

Step 1 • Remember your basic math at school:

+ +        =         +
+ –        =         –
– +        =         –
– –         =         +

Step 2 • Think buying something as a + and selling something as a –; therefore:

Buying a call would be a + +

Selling a call would be a – +

Buying a put would be a +

Selling a put would be a – –

Step 3 • Remember your risk profiles:

Where you end up with a + risk profile, the diagonal line is upward from left to right.

Where you end up with a – risk profile, the diagonal line is downward from left to right.

  • + Share This
  • 🔖 Save To Your Account