The Picture Of Profit - Basic Options Positions
Continued From Basic Spreads...
Long Call
The long call is the cornerstone of the options market. This basic position is usually the first trade of any novice options trader:
TERMINOLOGY NOTE: B.E.P. = Break Even Point
Long Put
Once an options trader has mastered the long call position, he usually graduates to the long put position. The long put is contrary to the generally bullish bias of the overall market. As a result, many retail traders have difficulty wrapping their heads around the mechanics of the long put:
TERMINOLOGY NOTE: B.E.P. = Break Even Point
Images courtesy of The Options Industry Council
Continued In "The Picture Of Profit - Intermediate Options Positions"
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About Mark S. Longo
Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market.Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.
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