Do I have to spend time understanding payoff graphs in options?

Question is, as long as I understand the formulas, and I know which one is unlimited profit/loss, do I have to spend time in understanding and making sense out of graphs?

No, you don’t.

Just make sure that you’re completely honest with yourself when you say that you understand the formulae.

Yes absolutely… Thank you!

You’re welcome.

If possible invest your time watching David Heatherington explaining the pay off diagrams - then you dont need the formulae or the book. You wouldnt need to even read the stuff again.

Thanks Sooraj… I’ll give it a try.

I didn’t memorize formulae or payoff diagrams at L3. If you understand how each position profits/loses, you can easily just think through a bull spread or a straddle.