An option trading strategy which is established by selling a call option and then buying a put option at a lower strike price. It may also involve buying/ selling puts and selling/ buying calls at the same strike and at the same expiration month. The net position will determine whether combo is a bearish combo or a bullish combo. A bearish combo and long underlying yields a neutral position. Likewise, a neutral position is created by combining a bullish combo and short underlying.
December 16, 2024
