4 ms·
What? Shorting call spreads is not how most people would protect a position. Perhaps you're thinking of a collar? (short calls to fund puts?)
by qeternity 4y ago
What? Shorting call spreads is not how most people would protect a position.
Perhaps you're thinking of a collar? (short calls to fund puts?)
- diab0lic 4y agoI’m not saying people sell these for insurance. One of the two options in this spread IS insurance. A short call spread is someone selling calls (option A in the link) and buying insurance on said sale (option B in the link).