Options 101 Course

The 4 Basic Option Risk Profiles

Risk Profiles Summary

You have now learned what the essential risk profiles look like and what they mean to you in terms of maximum risk and reward.

Profile Description Max Risk Max Reward Breakeven
Buy Asset purchase price uncapped purchase price
Sell Asset uncapped short sale price short sale price
Buy Call call premium uncapped strike price plus call premium paid
Sell Call uncapped call premium received strike price plus call premium received
Buy Put put premium strike price less put premium paid strike price less put premium paid
Sell Put strike price less put premium received put premium received strike price less put premium received


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