Strategy # 4: Long/Short-Call Strategy, Ratio Writing on the Short Side
Michael C. Thomsett
Chapter Chapter 13 in Options for Swing Trading, 2013, pp 245-265 from Palgrave Macmillan
Abstract:
Abstract The use of long and short calls provides risk reduction if the short side is covered. However, this does not eliminate risk but only shifts from market risk to exercise risk and also limits the income potential of bearish moves. With any short option, your swing trading profit can never be greater than the premium paid for the call.
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-34411-3_14
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DOI: 10.1057/9781137344113_14
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