Learn how a single diagram allows you to see the effect that price, time, and volatility can have on potential gains and losses from options trading.

A risk graph is a two-dimensional graphical representation that displays the profit or loss of an option at various prices.

Call options are a type of option that increases in value when a stock rises. They're the best-known kind of option, and they allow the owner to lock in a price to buy a specific stock by a specific ...