Smooth Sailing With Options

When selling options there are only two types of option we can sell, puts and calls. There are only two ways the trade can go, above your strike or below your strike. So here’s a flow chart that strips it down to the very basics. This doesn’t say anything about managing positions early in the contract or the many choices near expiration, that’s all in the book. This is just the first steps of the dance. Hope it’s helpful!

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