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N FLA | Carlson said "build a fence"
I think he means:
What is a Fence (Options)
A fence is an options strategy that establishes a range around a security or commodity using three options. It protects against significant downside losses but sacrifices some of the underlying asset's upside potential. Essentially, it creates a value band around a position so the holder does not have to worry about market movements while enjoying the benefits of that particular position such as dividend payments.
Typically, an investor holding a long position in the underlying asset sells a call option with a strike price above the current asset price, buys a put with a strike price at or just below the current asset price, and sells a put with a strike below the first put's strike. Expirations should be the same. | |
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Feeder calf call options for this fall/winter
