Can someone please help me by explaining this answer n question— how this is only long strategy?
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Can someone please help me by explaining this answer n question— how this is only long strategy?
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If you go long both on Call and Put
You buy call option if share price goes up you exercise the option and if it does not the call lapses.
You buy the Put option if share price goes up the put lapses but if the share price falls you sell the share at the strike price.
So basically there is a downside protection.
I hope this is the correct answer to the question