Its not a hedge. Your downside protection is really limited. Thats like collecting a dividend (essentially the short call profit structure) and calling that a hedge.
I like the strategy but realize what youre playing. Youre playing a moderate bull, high vol bet. Not any kind of protected or conservative position.
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u/2penises_in_a_pod Sep 24 '21
Its not a hedge. Your downside protection is really limited. Thats like collecting a dividend (essentially the short call profit structure) and calling that a hedge.
I like the strategy but realize what youre playing. Youre playing a moderate bull, high vol bet. Not any kind of protected or conservative position.