Risk Graphs: Short Combo
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-The Short combo is comprised of a higher strike Short Call and a lower strike Long Put in the same expiration month. The credit from the Short Call helps to finance the Long Put. As a result, the position can have very little if any debit. The strategy simulates very closely the risk profile of Short Stock, but for much less money. It is a bearish position. Study the risk graph and you should gain understanding of the risk and reward. Robin






















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