Option Sell Put Option - Buy Call

: Since you are both long and short an option with the same terms, the effects of time decay (theta) and implied volatility (vega) usually offset each other. Variations

: It is used when you expect a sharp appreciation in the stock's price during the life of the options. buy call option sell put option

: Substantial and similar to owning the stock; you face significant losses if the stock price falls, as you are obligated to buy the stock at the strike price if the short put is assigned. : Since you are both long and short

: Theoretically unlimited, as there is no cap on how high a stock's price can rise. buy call option sell put option