Can you create this with a 1-2 yr leap? no leverage on returns just one for one. seems like a straddle but once stock is down > 25% you begin to start losing 25%+
newwurld. Thanks for the reply, I didn't know what a knockout put was until you posted. Where can you buy those, if at all, look like they are all OTC and maybe institutional? Also why two knockout puts and not just one? Thanks again.
You need an isda to buy a knockout put. So it's only institutional. Two knockout puts: one to neutralize the long stock and one to make money on the downside.