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Short Call Vertical

Analyzing the risk profile of a short call vertical

Short Call Verticals Compared To Short Shares

Now, let's compare the risk profile of a short call vertical to that of 100 short shares. Both positions would profit in a market sell off, however the short call vertical has a much lower potential for profit. On the other hand, short shares carry far more risk than the vertical and have a much lower probability of profit.
Figure 1 Figure 2 Figure 3

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