Visually construct and analyze options strategies

Short Combination

Options Strategy - Short Combination

Description

A Short Combination is the same as a Short Straddle with one difference. Instead of using options with the same strike price, the investor uses two OTM options in the hope of limiting losses if wrong about XYZ remaining near $60. Initial credit smaller than Short Straddle. Maximum profit occurs with XYZ between strikes.

Options Strategies :: Neutral Strategies :: Short CombinationBack to top