Same stock -
a) I write/sell an ATM put option
b) I buy a future
In both cases I am ready to buy the entire lot size in cash if the stock falls.
Which option - a) or b) is better in terms of risk-reward basis
Same stock -
a) I write/sell an ATM put option
b) I buy a future
In both cases I am ready to buy the entire lot size in cash if the stock falls.
Which option - a) or b) is better in terms of risk-reward basis
As you are shorting the put and buying the future… seems like you are in long… in both sides…, so both has equal risk.