Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Options are touted as one of the most common ways to profit from market swings.
Options are touted as one of the most common ways to profit from market swings. Whether you are interested in trading futures ...
The effects of implied volatility are somewhat muted in a synthetic long, since you're simultaneously long and short two options at the same strike. However, if the call moves into the money ...
To build a synthetic short spread ... Since you're short a call option, the maximum risk on this trade is theoretically unlimited -- making a rally above the call strike your worst-case scenario.
Synthetic shares are financial instruments — usually a combination of put and call options — that traders use to create a similar payout to an underlying stock. Creating a synthetic stock ...