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Yes. You are long 5 x 111C. Now if you short say 5 x 125C at 0.4 you've reduced the price of that synthetic 111 call by 40 cents. The result is that you would be long a 5-lot 111/125 call spread (via the synthetic). You have no upside risk, but your terminal gains are capped at 125. No...

It is. The synthetic is simply the arbitrage-equivalence when adding a share position. "What is the difference between a put and a call...? Shares" To convert a put to a call -> long 100P -> long 100P +100 shares -> long synthetic 100C. They are identical (conversion mkt). The uses in the mkt...

A married put converts the position to a synthetic long call at the put strike. Long 100 shares and long 1 110P results in a long 110C.

Who? Kevin? No.

You're very likely to get assigned at 105. Is it worth it to you to receive $118 net for your shares no later than April 15? It's not going to make sense to cover if trading an ITM strike as a CC.

The April 105C at 2.25 extrinsic doesn't look like a bad short. It will be 1.5 max after earnings with shares above 116. I'd short the 105s tomorrow and cover post report.

I had looked at TDA's earnings tab for a vol-figure and it's nonsense. Anyway, XOM vol term structure is essentially flat at 27% from April out to Jan 2024. You're risking 100-150bps on vol post earnings (25.5 to 26 vol). The only risk to waiting is a drop in the shares post earnings. If I was...

No, but the vol-figure @ delta will drop. Say that the ATM strike (50D) is trading 30-vol. Post report the ATM strike for the same term will be trading 28-vol. If you want to sell vol then you need to add duration. If you want to bet on price and distribution, short near-term. If you're...

There are a lot of complex moving parts. All that you can do is buy or sell the thing. Modeling is complex. I arrive at a risk-reversal skew figure/ATM vol. An integer figure which I rank against prior Q-earnings releases. SN-vol generally has a put skew. Know where you are in the news cycle...

I wanted to stress that unless you're bullish into earnings it's not ideal to short after the report as vol will drop.

The only advantage of a CC over a SP is if you're writing against an existing share position. I would look into overwriting (short synthetic straddles).

What I am trying to get across is that shorting after earnings will result in on of the following scenarios: 1) XOM rallies -> volatility drops 2) XOM falls -> vol holds -> lost opportunity on deltas If XOM drops you have a lost opportunity to short the calls prior to the report to reduce...

You shouldn't time the short vol here. You don't understand the nuances. I have XOM vols dropping 2 points (30 to 28) after earnings. XOM drops? Vol will hold up but you're down on shares. Then you're going to short a contract with less than 3 weeks to exp. You went from April (vol-sensitivity)...

Shares + married puts = synthetic long call at strike. Shares + 110 puts - 120 calls = synthetic long 110/120 call spread. If you don't mind incurring some upside risk you can sell two calls at say the Apr 125 strike. Long 100 XOM and short 2 calls = short the synthetic 125 straddle. The trade...

Word salad. Logorrhea. What CC write? A strip of strikes as the OP suggests is a CC. You don't suggest anything. You have no expertise. You're just here.

“Dollar Nookie” is the relative value of the outcall service provided.

Don’t listen to scat. He’s an idiot. CC are equivalent to short naked puts. If you want max sensitivity to vol (Vega) then the only answer is ATM for the lot. Why guarantee an assignment for small change? Look at the April series w/o considering your current position… would you short the n-put...

I was into resveratrol but it's since been basically debunked in terms of in vivo. I don't take NMN. "David Sinclair" is a hack and snake oil salesman. I take 1g of C/day.

lol nobody knows the extent of KS' net liq.

The wealthiest trader that I know, trades shares and index futures, and only trades breakouts.