What Everybody Ought to Know About Option Synthetics

What Everybody Ought to Know About Option Synthetics

Two definitions of the word “synthetic” are: produced artificially devised, arranged, or fabricated for special situations to imitate or replace usual realities These definitions can describe “Synthetic Positions” in option trading. To understand synthetic...
What is a Synthetic Long Stock Position?

What is a Synthetic Long Stock Position?

Today you will learn about a basic synthetic option position called the synthetic long stock position. You can create a synthetic long stock position to replicate and replace buying stock outright. You also can create a synthetic short stock position to replicate and...
Option Synthetics Primer

Option Synthetics Primer

Let me ask you a question. Which position is more risky? Selling a Covered Call Selling a Naked Put Most people would say selling a Covered Call is a great investment strategy, but selling a Naked Put is terribly risky. If you understand Option Synthetics, you'll know...