Journal of Business & Financial Affairs

A Study on Strap Option Combination Strategy

Abstract

Suresh AS

Options are considered risky for investors and speculators due to fluctuation in the direction of price movements. An investor has to face the risk of profits where it may be extremely high or loss, here investors fail in choosing profitable options. The study is made to minimize the risk of investors by using straps option combination strategy in choosing profitable investment strategy and to know how the option combination strategy would be profitable when market moves up or down. The study has considered the securities of both increasing and decreasing prices, so that it would be possible to give suggestions for investors that how in both cases they can make profits.