Objective: Profit from a decline in the underlying asset's price.
Max Profit: At the middle strike price at expiration.
Max Loss: Limited to the net premium paid.
Breakeven Points:
Lower: Lower Strike + Net Premium Paid
Upper: Upper Strike - Net Premium Paid
Market Outlook: Best for expecting a moderate decline and low volatility.
Advantages: Limited risk, potential high reward.
Disadvantages: Requires precise price prediction, complex management.
Max Profit: At the middle strike price at expiration.
Max Loss: Limited to the net premium paid.
Breakeven Points:
Lower: Lower Strike + Net Premium Paid
Upper: Upper Strike - Net Premium Paid
Market Outlook: Best for expecting a moderate decline and low volatility.
Advantages: Limited risk, potential high reward.
Disadvantages: Requires precise price prediction, complex management.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.