RADICALFIRE.COM
01
The term “long” can be confusing in this context, but it just refers to the act of the trader buying an option.
02
The maximum profit for the short put strategy is the premium price paid on the put.
03
Traders still long on a stock or security but want to protect their downside may consider protective puts.
04
A covered call is when an investor owns underlying security and then sells call options on them.
05
Most investors buying calls are using it to add leverage to their portfolios because purchasing the right over a certain number of stocks