Price missed to fulfill the balance, which by the rules of Action/Reaction means, it will go more in the opposite way then from where it came.
In this case, CL would travel down below the blue CL, and as we know, chances are that price will reach the CL (the white one in this case) over 80% of time ...umpf...long way down if it works out like this.
Selling Call Spreads or Risk Reversals are a nice way to short it, instead of taking a pure Future Risk.
P!
In this case, CL would travel down below the blue CL, and as we know, chances are that price will reach the CL (the white one in this case) over 80% of time ...umpf...long way down if it works out like this.
Selling Call Spreads or Risk Reversals are a nice way to short it, instead of taking a pure Future Risk.
P!
...what's wrong here?