- Criteria for Successful Investing
- Risk Profile Charts
- The Definition of an Option
- The Valuation of Options
- Intrinsic and Time Value for Calls
- Intrinsic and Time Value for Puts
- The Seven Factors that Influence an Option’s Premium
- Risk Profile Charts for Call Options
- Risk Profile Charts for Put Options
- Memory Tips for Long and Short Calls and Puts
- Basic Risk Profiles Summary
- Chapter 1 Major Learning Points
Basic Risk Profiles Summary
These are the four charts you need to remember. Even if you just remember the long call option risk profile, you should now be able to construct the other three basic option positions. When you are comfortable with these and the logic behind them, you’ll be ready to look at spreads and combinations with ease.
The Four Basic Risk Profiles for Options
This page is duplicated overleaf.