Expand model tag support: add GLM-5.1, simplify Anthropic IDs, scan tags anywhere in message
- Flink update_bars debouncing - update_bars subscription idempotency bugfix - Price decimal correction bugfix of previous commit - Add GLM-5.1 model tag alongside renamed GLM-5 - Use short Anthropic model IDs (sonnet/haiku/opus) instead of full version strings - Allow @tags anywhere in message content, not just at start - Return hasOtherContent flag instead of trimmed rest string - Only trigger greeting stream when tag has no other content - Update workspace knowledge base references to platform/workspace and platform/shapes - Hierarchical knowledge base catalog - 151 Trading Strategies knowledge base articles - Shapes knowledge base article - MutateShapes tool instead of workspace patch
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description: "A bearish capital-gain strategy (bear put spread financed by a short OTM call) selling an OTM call at K3, buying an ATM put at K2, and selling an OTM put at K1, ideally structured at zero cost."
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tags: [options, speculation, bearish, seagull]
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---
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# Bearish Short Seagull Spread
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**Section**: 2.56 | **Asset Class**: Options | **Type**: Speculation
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## Overview
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The bearish short seagull spread is a bear put spread financed with a sale of an OTM call option. It amounts to a short position in an OTM put at K1, a long position in an ATM put at K2, and a short position in an OTM call at K3 (K1 < K2 < K3). Ideally, the trade is structured to have zero cost. The trader's outlook is bearish. This is a capital gain strategy.
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## Construction
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- Sell 1 OTM put option at strike K1 (lowest)
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- Buy 1 ATM put option at strike K2 (middle)
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- Sell 1 OTM call option at strike K3 (highest, K3 > K2 > K1)
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- All same expiry; ideally zero net premium (H = 0)
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Net debit or credit H
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## Payoff Profile
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f_T = -(K1 - S_T)+ + (K2 - S_T)+ - (S_T - K3)+ - H
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Breakeven depends on sign of H:
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- S* = K2 - H (if H > 0)
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- S* = K3 - H (if H < 0)
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- K2 <= S* <= K3 (if H = 0)
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- Max profit: P_max = K2 - K1 - H (if S_T <= K1; bear put spread at max, put not needed)
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- Max loss: L_max = unlimited (stock rises without bound above K3; short call exposed)
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## Key Conditions / Signals
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- Bearish outlook; expects stock to fall below K2 toward K1
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- Ideally zero-cost (H = 0): the short call premium finances the bear put spread
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- Short call at K3 creates unlimited upside risk above K3
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## Notes
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Unlike the bearish long seagull (which buys a call to cap upside), the bearish short seagull sells a call at K3 to finance the bear put spread, resulting in unlimited upside loss. The short put at K1 caps the downside profit. Requires careful stop-loss management above K3.
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