Sell Put

Long Combo: Sell a Put, Buy a Call

When an investor/trader is bullish on the stock, it is a bullish strategy. In this strategy as stock price rises, it starts making the profit. For example,  a stock ABC Ltd is trading at Rs 450, Mr XYZ is bullish on stock but does not want to invest Rs. 450, but want to earn a profit. He opts Long combo strategy, Sells Put option with strike price Rs 400  at a premium of Rs 1 and buys a Call option of strike price 500 at a premium of Rs 2. The Net cost of strategy is Rs 1. Strategy: Sell a Put + Buy a Call . Now consider the following scenario If the company ABC Ltd's shares moved to 55...
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