long straddle strategy
Protective put strategy is basically the use of a combination of options to build a complex contract that has the ability to bring down the total risk that is attached to the transaction. It is done by buying a call and a put option with the same exercise price, same maturity date and in the same asset. This is a classic way of getting an option at the money.
- Part of Speech: noun
- Industry/Domain: Financial services
- Category: Finance
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