Recent content by rambo23

  1. R

    Pricing long synthetic for american style option with dividends

    Hi, I understand your suggestion of selling upside call spread, but would you hedge the entire Dividend? If yes then that would expose you to a dramatic loss in case the market crosses the spread, it's too much risk for me. Any other ideas? i understand options, maybe something a bit more...
  2. R

    Pricing long synthetic for american style option with dividends

    Hi, First of all thanks for responding. But i have couple of notes regarding your respond: 1. What leads you to believe that you "have more than a 1 delta" with a synthetic long?? Think about a reversal, for this position you are supposed to be delta neutral, but you have interest for the...
  3. R

    Pricing long synthetic for american style option with dividends

    Hi, I am looking to price Long synthetic on SPDR ETFs such as SPY, which goes to Ex on the day of expiration. I understand that when i buy the synthetic Long ATM i have more then 1.0 Delta, which means that if the price goes up high enough I will exercise the Call one day before expiration and...
See more
Back
Top