A combination of stock and call option strategies where an equivalent number of stocks are purchased as that of the lot size of the call of the same stock written simultaneously. This is a very popular strategy for traders and investors alike, transitioning from stock trading to options trading. The risk in this strategy is similar to a short naked put of the same underlying stock.
A trading strategy in which a short put is hedged with short stock in order to neutralize risk to the downside. This is essential the opposite of a covered call or covered write and can be used when the trader is bearish on the underlying security.[click to read more]