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Strategy View
Investor mildly thinks that the market will be volatile.
Strategy Implementation
Call option is sold with strike b, two
call options are bought with strike a and a call option is sold
with strike c. (A similar position
can be created with puts).
Upside Potential
Limited to initial credit received.
Downside Risk
Limited to the difference between the lower and middle strikes minus the
initial spread credit.
Margin
Margin off-set may be available.
Comment
This strategy is difficult to execute quickly. |
