In Currency Risk management, can someone explain how a Seagull option will reduce cost ??
I mean why to write a covered call on a put spread
In Currency Risk management, can someone explain how a Seagull option will reduce cost ??
I mean why to write a covered call on a put spread
You’re writing a put to help finance a (non-zero-cost) collar.
But you are already writing a put option so the cost is covered
There is still a cost to the put spread. Cost is not covered completely despite the premium earned on short put.