How is a readymade strategy better than just buying a call or put?
A single-leg trade (buying a call or put) puts your full premium at risk or can potentially even lead to unlimited losses. You can lose 100% of your capital, or more, if the market does not move as expected, with no offset.
That’s why a readymade strategy is a safer way to trade in options. It combines two or more legs – and hedges your position, hence limiting the loss. You don’t have to do anything; the app will automatically help you generate multi-leg option strategies based on your market view. Plus, you can see your maximum profit and maximum loss along with probability of profit, which means your risks are defined and visible before you enter. You are trading with full knowledge of the worst-case outcome.
Let's understand this with an example. Instead of buying a 22,600 CE at ₹180 (full ₹180 at risk), a Bull Call Spread adds a short 22,800 CE at ₹80, cutting net cost to ₹100, capping maximum loss at ₹100, and still offering ₹100 of maximum profit per lot.
Less risk. Defined outcome.
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