QUICKGUIDE

Each strategy has an
accompanying graph showing
profit and loss at expiration.
• The vertical axis shows the
profit/loss scale.
• When the strategy line is below
the horizontal axis, it assumes
you paid for the position or
had a loss. When it is above
the horizontal axis, it assumes
you received a credit for the
position or had a profit.
• The dotted line indicates the
strike price.
• The intersection of the strategy
line and the horizontal axis
is the break-even point (BEP)
not including transaction
costs, commissions, or margin
(borrowing) costs.
• These graphs are not drawn
to any specific scale and are
meant only for illustrative
and educational purposes.
• The risks/rewards described are
generalizations and may be
lesser or greater than indicated.