Class:

Directional

Synthetics:

Long Put A, Short Call A

When to use:

When you are bearish on the market and uncertain about volatility. You will not be affected by volatility changing. However, if you have an opinion on volatility and opinion turns out to be correct, one of the other strategies may

have greater profit potential and/or less risk.

Profit Characteristics:

Profit increases as market falls. Profit is based strictly

on the difference between the exit price and the entry price

Loss Characteristics:

Loss increases as the market rises. Loss is based strictly

on the difference between the exit price and the entry price

Decay Characteristics: