Visually construct and analyze options strategies

Long Stock

Options Strategy - Long Stock


A very well-known and frequently used strategy. Often times it is the first strategy that an investor will use within his/her investment program.

When to use

When bullish on XYZ and willing to accept the strategy's risk/reward profile. It offers a great deal of potential if opinion is correct. If wrong, it has a great deal of inherent risk.

Risk/Reward Characteristics

The strategy's P&L is based solely on the difference between the initial purchase price and the eventual selling price.

Break-even Point: Purchase price.

Time Decay: None.

Volatility: The more volatile the underlying stock becomes, the greater the potential for larger profits and larger losses.

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