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I wanna know about Box spread strategy |
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A box spread is a neutral, low-risk options trading strategy that involves combining a bull call spread and a bear put spread using the same strike prices and expiration dates. The strategy consists of buying a call and selling a call at higher strike prices, plus buying a put and selling a put at those same strikes. This four-leg combination aims to exploit arbitrage opportunities by profiting from any mispricing between the spreads. The potential profit and loss are both limited and are determined by the difference between the strikes minus any initial net cost. |
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Thanks |
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You are welcome |
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A box spread is a neutral, low-risk options trading strategy that involves combining a bull call spread and a bear put spread using the same strike prices and expiration dates. The strategy consists of buying a call and selling a call at higher strike prices, plus buying a put and selling a put at those same strikes. This four-leg combination aims to exploit arbitrage opportunities by profiting from any mispricing between the spreads. The potential profit and loss are both limited and are determined by the difference between the strikes minus any initial net cost.