Does anyone have a short cut/mnemonic/logic to memorize the various options for straddle, box spread, bull and bear spreads?
For the first 3 strategies Bull Call, Bear Put and butterfly Max Loss is the cost of the strategy Max Profit is the diff. in Xs minus cost of the strategy B/E Xl+cost of the strategy or Xh-cost of the strategy I don’t know of any shortcuts for others for others hope this helps
I think you theme will work for most part with little tweaks for straddle: Max Loss is the cost of the strategy (since you are long both call and put) => mx loss = c+p Max Profit is the diff. in Xs minus cost of the strategy since there is 1 strike price , instead of diff in Xs, its Strike -X minus cost of the strategy B/E Xl+cost of the strategy or Xh-cost of the strategy since there is no Xl or Xh , all we have is X same applies for B/E B/e = X+cost of the strategy or X- cost of the strategy I will hv to think abt butterfly