Back
BlogsSYNTHETICS

COVERED WRITESCONVERSIONS & REVERSALS

Darren Krett

Friday 10 February 2023

Share on:

CONVERSIONS & REVERSALS facebookCONVERSIONS & REVERSALS twitterCONVERSIONS & REVERSALS linkedin

Post views: 7745

SYNTHETICS

Categories

General

Synthetics:

When I first started trading options I used to have a little card written with this on it. Basically it is Two or more trading vehicles packaged together to emulate another pricing vehicle or spread. Because the package involves different components, price is also different, but the risk is the same. So, for example, owning the underlying and shorting the call IS THE SAME AS being short the put (of the same strike as the call) and so on....

Long Underlying + Short Call = Short Put

Short Underlying+ Long Call = Long Put

Long Underlying + Long Put = Long Call

Short Underlying + Short Put = Short Call

Long Call + Short Put = Long Underlying

Short Call+ Long Put = Short Underlying

No attachments

COVERED WRITESCONVERSIONS & REVERSALS

Related reads

General
WHAT IS THE "UNDERLYING"?-image

Darren Krett

Friday 10 February 2023

WHAT IS THE "UNDERLYING"?

Definition: The underlying is the instrument to be delivered in the event an option is exercised. An underlying can be a stock or shares of
WHAT IS THE "UNDERLYING"?

0


Comments (0)

General
USES FOR CALLS-image

Darren Krett

Friday 10 February 2023

USES FOR CALLS

1. Long calls are bullish speculation with fixed, limited risk. In futures options, cach options contract typically represents one underlyin
USES FOR CALLS

0


Comments (0)

Get started with Leviathan FM today

7 day free trialContact us
See our pricing

© 2015 - 2024 Leviathan Financial Management LLC. All Rights Reserved.

Legal Disclaimer: The information provided in the Leviathan website is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor professional to determine what may be best for your individual needs. Leviathan Financial Management does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, Leviathan Financial Management disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice. Your use of the information on the website or materials linked from the Web is at your own risk.

Structured by Krett