AGENDA:
Profit-loss profiles of different Option positions
Differences in the risk-return tradeoffs of Long Calls, Long Puts, Short Calls and Short Puts
Payoff graphs of maximum profit, maximum loss and breakeven points for these different positions
Option combination strategies
Covered Calls, Protective Puts and Collars
The risk-return profiles of these combination strategies
The role of these combination strategies pertaining to an investor’s portfolio holdings
Taxation of Option trades
The tax rules pertaining to Options trades