Protective Call
Short Stock + Buy Call
Purpose
: To create a synthetic Put position with limited risk and unlimited gain potential.
Profit When
: Down
Risk
: Limited
Reward
: Unlimited
Breakeven Pt
: Stock Price - Call Premium
Max Profit
: Unlimited
OppiE's Note
: Protective Call is created to protect short stock positions against losses should the underlying stock moves up instead of down.
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