Seeing as this is a take on McMillan, we should refer to his explanations for doing this trade. Its hedged. You should expect to make less profit on a hedged position than on a speculative position.
Why make a hedged trade? I would say in this market, it makes a lot of sense. It is so easy to miss a directional move.
Options as a 'Gold'en Opportunity [View article]
Why make a hedged trade? I would say in this market, it makes a lot of sense. It is so easy to miss a directional move.