Risk Graphs: Long Combo
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-The Long Combo, sometimes known as a Risk Reversal, is comprised of a lower strike Short Put and a higher strike Long Call. The credit from the Short Put helps to pay for the debit of the Long Call. As a result, the position can have very little if any debit. The strategy simulates very closely the risk profile of Long Stock by for much less money. It is a bullish position. Study the risk graph and you should gain understanding of the risk and reward of the position. Robin






















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