Options Trading Tutorial

dp straddle gif

dp straddle gif

Summary: holder will lose money Here is a P L chart of an option straddle The vertical axis represents the profit or loss The horizontal axis represents the price of the underlying stock Note how when the price of the underlying stock is far from the strike either far below the strike price or far above it the straddle is at its most profitable This means that one leg of

Image Dimensions: 611 x 318

Image originally found here.