Will someone explain to me the reason behind buying both the Put and Call? {nm} Feb 12, 18:45
If you think the strike is fair, but not sure if it will over or underperform. {nm} Feb 13, 14:13
If you buy and that's the wrong play your downside is limited to H$2 per share. Feb 13, 17:21
So if you buy both and the spread is more than $2 either way, your are assured of a profit. {nm} Feb 14, 10:50
Has to be more than $4 to cover whichever one cashes out at 0. {nm} Feb 14, 14:33
Yep, my calcs were 100% off. Thanks. Feb 14, 17:48
Even if the "winning" CA/PU doesn't reach $4, it still partially offsets the losses from the other. {nm} Feb 16, 10:45