Option Risk Graph

Bill ackman trade

Risk Graph is a valuable tool that I use often for entry into an option trade. Whenever BB announced some notable news. I will analyse their trade and draw the risk graph.

This help me to place my option trade base on the risk graph. From the risk graph, I know where are their profit and loss zone. For the below, I did a strangle with enough safety of margin from Bill Ackman’s BE points.

billackman Jan16 on VRX billackman Jan17 on VRX