Visualizing Option Payoff Diagrams
When I was a teenager, my father’s stockbroker tried to explain puts and calls to me. He introduced me to the hockey stick diagrams that many investors use to visualize these types of strategies. It took a few more years for me to get comfortable understanding how puts and calls work. Visualizing a combination of puts and calls and stock positions was always challenging to me, so years ago, I put together a basic option model. Here’s the flash version.
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