Alternative Offsets Beyond Short Calls or Short Puts
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The most basic form of an installment strategy involves a single LEAPS position, offset by a series of single-option short positions (either calls or puts). However, this does not limit the possible combinations and variations of the strategy. Beyond these basic structures and formats, a broad number of variations may also be employed. These involve degrees of profit potential and risk, and traders should be aware of these before entering advanced trades.