having a hard time with maximum gains and loss for options equity.
When an option holder(calls) exercises a call option is that money out or in? do you add or subtract? what is the best way to remember for the different types of equity options strategies
Long Calls
Short Calls
Long put
Short puts
For me, the most practical way to understand is to put myself in the shoes of each investor, whether as a Holder (Long) or Writer(Short) in the situation presented, and for this you need to understand the position.
GAIN/LOSS
Holders obtain profits in the exercise in ITM.
HOLDER LONG CALL
HOLDER LONG PUT
HOLDER LONG CALL
I want to buy an asset at 50 (Strike) in the future, I have a risk that it will rise to 100, so I pay a premium to have the right to buy at 50. If at the exercise it is at 20 (below the strike), this purchase becomes OTM because it makes no sense to pay a lot for something that I can buy cheaper.
HOLDER LONG PUT
I want to sell an asset at 50 (Strike) in the future, I have a risk that it will fall to 20, so I pay a premium to have the right to sell at this price. If at the exercise it is at 100 (above the strike), this purchase becomes OTM because it makes no sense to sell cheap for something that I can sell more expensive.
Writers make profits at the exercise in OTM.
WRITER SHORT CALL
WRITER SHORT PUT
WRITER SHORT CALL
I believe that the market will fall so I want to receive an “extra” for my bet. I sell the option to an investor to be able to buy an asset from me at 50 (Strike) in the future and I receive a premium today.
Scenario 1
If at the exercise the asset is 20 (below the strike), the investor who bought from me will not exercise the right and I keep my premium. In this scenario it is ITM for me and OTM for the Holder (LONG).
Scenario 2
If, at the exercise, the asset is at 100 (above the strike), the investor who bought from me will exercise the right and I lose the premium + the price difference if it was not a covered sale. In this scenario, it is OTM for me and ITM for the Holder (LONG).
WRITER SHORT PUT
I believe that the market will GO UP, so I want to receive an “extra” for my bet. I sell the option to an investor who can sell me an asset at 50 (Strike) in the future and I receive a premium today.
Scenario 1
If, at the exercise, the asset is at 20 (below the strike), the investor who bought from me will exercise the right and I lose the premium. In this scenario, it is OTM for me and ITM for the Holder (LONG).
Scenario 2
If, at the exercise, the asset is at 100 (above the strike), the investor who bought from me will not exercise the right and I keep the premium. In this scenario it is ITM for me and OTM for the Holder (LONG).
Hope this helps! 
Thank you so much- so helpful 