Advertisement

Strategy # 4: Long/Short-Call Strategy, Ratio Writing on the Short Side

  • Michael C. Thomsett

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.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Michael C. Thomsett 2013

Authors and Affiliations

  • Michael C. Thomsett

There are no affiliations available

Personalised recommendations