Of course, the exercise prices of these two option contracts are different, and of course they can be the same. Buying put options is mainly to transfer the risk of futures falling, while selling call options is only to collect part of the premium to achieve the purpose of reducing transaction costs. This is a conservative trading strategy.
1. Scope of use: bull market with moderate market fluctuation.
2. Implementation method: buy relatively cheap bearish contracts and sell bullish contracts with the same remaining term. At the same time, buy futures contracts with matching number of options positions.
3. Implementation principle: try to ensure that futures prices rise and define an interval to support prices.
4. breakeven point: the price of futures-call option premium+put option premium.
5. Strategic risk: When the option price changes too much downward, this position will lose money, and the biggest loss is the futures price+put option premium+put option premium.
6. Income: If the futures price rises above the strike price, you can get the maximum income at this time, that is, the call option price-the strike price of the put option-the risk you should bear.