Build a Short Combo Strategy
What is a short combo?
BearishNearly Unlimited ProfitUnlimited Loss
Similar to a short synthetic future, but with a distance between strikes. This makes the trade have no return or loss between the strikes at expiration, and only gain or lose if the stock goes below strike A or above strike B. Further from expiration, it behaves like a short synthetic future.
- Buy a put at strike A
- Sell a call at strike B