Best option strategies to learn ....

[anycolour]

Lol, I appreciate your reply, but it's like Einstein talking to a squirrel.

I'll try to wrap my brain around it a bit more when I come back from work, maybe I can get closer to figuring it out. Thanks!

 

[ironchef]

I don't get it, could you please take a look at it and fix/tell me how to fix it?

The first chart on the left side is perfectly aligned. But the second chart on the right is misaligned.

Thank you!

I don't understand the math either, but the concept is simple:

http://www.math.ucsd.edu/~msharpe/stockgrowth.pdf

This one is a little easier:

https://financetrain.com/why-lognormal-distribution-is-used-to-describe-stock-prices/

In layperson's language, the mathematicians found stock price could not go negative and a normal distribution does go negative, so they use a lognormal distribution as a better representation since it cannot go below zero.

In real life, stock prices do not behave lognormal most of the time but for the math geniuses, by using it they can work out various formulas to describe financial concepts.

I don't think I make any sense.