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trippd6 t1_iy3qbv5 wrote

Eh, bad example.

A better example is selling the call and buying a put and 250. You most likely won’t loose and when you do your losses are limited. That is why you can sell them safely. You know how much you loose if the price goes to zero. Because your loss is limited and it’s rare, you will make money.

The only way this doesn’t work is if the market goes up and down repeatedly very quickly. That won’t happen (because it will just go down and we are all hosed)

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