2min chapter

Market Depth cover image

The ECB Is Cornered | Imran Lakha

Market Depth

CHAPTER

Puts and Puts Spreads - How to Build an Implied Probability Distribution

Putspet strategy involves buying a put and selling it to limit the upside you can make. The channel you have identified, you can look at how much you paid for that pu spread channel against what the maximum pay outis. And you can derive an implied probability. On very liquid markets, eve correctny from wrong.

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