![]() put options with strike price E, if the current stock price is S and Choose a strategy which uses puts or a combination of calls and puts, and construct its payoff diagram using your Shiny application. Add a possibility to use also put options with the same exercise prices.You can also use Option Strategy Finder on that website to find a strategy that meets your criteria. Bullish strategies investor expects the stock price to rise for example.Bearish strategies investor expects the stock price to fall for example.We expect big change - possible strategies are for example:.We expect small change - possible strategies are for example:.They differ by the assumption that this move will lead to a small orīig change in the price (without specifying the direction of this Inverstor doesn't know the direction in which the stock price will move. Neutral (non-directional) strategies - they are used if the.OTM (out of the money): if the option expired today, we would not exercise it.ITM (in the money): if the option expired today, we would exercise it.ATM (at the money): the stock price equals the strike price.The term characterized the options according to the relation between the current stock price and the strike price of the option.
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