Risk graphs can be drawn to show the potential payoffs for single options as well as for spreads or combination strategies. Risk graphs can also be constructed for short positions, or for complex ...

However, options ... P&L graph above shows that the protective collar is a mix of a covered call and a long put. The trade-off is potentially being obligated to sell the long stock at the short ...

During periods of fear or euphoria, the CBOE equity put-call ratio can inform your judgment by showing where sentiment may ...

Beta hedging works well when the hedging tools are short positions or in-the-money options ... the spreadsheet will begin to show estimates of the number of puts on your chosen ETF you will ...

We’ve talked before about how exchange-traded funds (ETFs) represent an efficient tool for gaining quick access to different types of assets or investment exposures. We’ve also discussed how ...

A naked put option seller would sell the put option for an option premium, without any downside protection from being Short the underlying stock. Consider an investor who writes a put option on ...