Profit and Loss Calculations for Combined Positions

What this video covers

• Tracking stock purchases, stock values or sale proceeds, and option premiums in a cash-out and cash-in ledger
• Calculating profit or loss by subtracting total cash out from total cash in
• Finding covered call results when the stock stays flat, rises and the call is exercised, or falls
• Explaining why a covered call writer’s gain is capped and how the premium cushions a stock decline
• Using the strike price, not the market price, for stock proceeds when an option is exercised
• Calculating protective put profits and maximum losses, including when the stock falls to zero
• Classifying premiums as a cash outflow for option buyers and a cash inflow for sellers, then multiplying per-share results by 100