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options trading cheat sheet author jyoti bansal analysis

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OPTIONS TRADING CHEAT-SHEET Hi, I’ve created this cheat sheet to be a quick go-to reference for your options trades. This cheat-sheet contains more than a dozen strategies for all market conditions with differing potential for profit and loss. There are various ways to construct different strategies, but I have explained the most popular and best options strategies. BASIC STRATEGIES 1. Long call Buy 1 Call at strike price A The profit increases as the market rises. The break-even point will be the options strike price plus the premium paid for the option. Option Trading Cheat Sheet | © 2019 Jyoti Bansal Analysis Page 1 of 15 2. Long Put Buy 1 Put at strike price A The profit increases as the market falls. The break-even point will be the options strike price minus the premium paid for the option. Option Trading Cheat Sheet | © 2019 Jyoti Bansal Analysis Page 2 of 15 3. Covered Calls Buy underlying shares and Sell 1 Call of higher strike price. Max profit will occur if the price of the stock is at or above the call strike at expiration date. Breakeven point will be the purchase price of the stock minus premium received. Option Trading Cheat Sheet | © 2019 Jyoti Bansal Analysis Page 3 of 15 4. Protective Put Buy stock and buy 1 Put of lower strike price. It is a hedging strategy to protect the portfolio against a market correction. Breakeven will be the stock purchase price plus the premium paid. Option Trading Cheat Sheet | © 2019 Jyoti Bansal Analysis ...
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