Az opciós stratégia tartományában
Sell a middle lower strike OTM Put option.
Sell a middle higher strike OTM Call option. Buy a higher strike OTM Call option. All components have the same expiration.
The strategy uses both Call and Put options. The difference between consecutive strike prices must be equal. Steps Make sure the share prices are moving within certain limits.
Exit: The position can be closed before expiration. The commissions should not be forgotten during calculations. Basic characteristics Maximum loss: Difference between consecutive strike prices - net credit.
Maximum profit: Received net credit. Time decay: Time decay has a positive effect on the value when the position is profitable, and a negative effect when the position is lossmaking. Advantages and disadvantages The investor can profit from share prices moving within given limits.
Low and limited risk with potential income. Disadvantages: Potentially higher profit is only possible close to expiration.
Closing the position Buy back the Short options and sell the Long options. Mitigation of losses: Close the position the above-mentioned way.