Options trading data analysis — Part 5-Cash and equity capital

Even though options are the main instrument for our trading strategy as an options trader, chances are we will at some point end up with open equity positions. We may want to open covered calls, long equity to cover existing call options, or end up getting assigned. Part 1 and Part 2 show us how to calculate cash capital for our account, but when we have long equity positions in the mix, we might see something odd. Have a look at the graph in Graph 1.