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 option positions (or “synthetics”), we have to understand the basic relationship … [Read more...] about What Everybody Ought to Know About Option Synthetics
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 replace selling stock outright. A synthetic long stock position … [Read more...] about What is a Synthetic Long Stock Position?