What is the bear?

Sometimes it is referred to as a short impact, Bear Straddle is an investment strategy that includes a short position on both PUT and the call option. The idea of ​​approach is to maximize the chance to increase the value of the share portfolio in a very short period of time, usually in more than a month. Here are some information about how bearish stages and benefits that usually result from the use of this investment technique can be organized. In principle, straddling includes either the purchase or sale of the same number of banquets and calls. Along with the sale or purchase of the same number of bows and calls, it is also important to ensure that all participating securities have the same strike price and the same expiration date. The key problem to remember with the turning point is that the approach is banking on the projections of how to jerk in a short or long -term way. Puty and calls referred to as volatility take into account the specific conditions that the investor is certain and will result in a profit from the purchase andSales of tickets and calls.

Bear Straddle is based on the assumption that there will be no major change in the price of the shares in the short term. The projection is that the conditions seem to indicate a modest increase that will lead to a small amount of profits from purchasing and sales activities. With a bear impact, the risk is somewhat minimized in favor of being a small but almost certain amount of profit. When it comes to safe playing, the bear Strad is a solid approach.

Unlike Bear Straddles, the long paint expects some dramatic change for a longer time. Of course, this drama TIC could be in favor of the investor or could lead to a loss. Long interventions are designed for investors who are willing to take advantage of chances and can afford to cover the loss if the volatile change does not lead in the direction of the investor. While lacks the relative safety of the bear Stoddle, a long coating promises a shanCi earn a huge amount of money from the company, although it could also lead to significant loss.