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When To Use It: Best in the event the trader provides a bearish sentiment with regard to the underlying asset and expects the asset's price to say no.
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Though this strategy is sort of a butterfly distribute, it employs equally phone calls and places (in lieu of 1 or another). Traders such as this tactic with the income it generates. With it, earnings and loss are restricted within a particular assortment, based on the strike charges of the options applied.
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