Search results

This will put the trader into p a position of the stock HAVING to go up to profit, because what you have is a synthetic bull spread. This then begs the question, why not just trade the spread? Same payoff diagram, with vastly less capital usage. That way, the trader can somewhat replicate...

I trade stocks (via options) and forex..err well, currency futures. Overall I make more money via stocks, but still like the futs. If I had to choose I'd take stocks.

Exactly emjroll. That should be the next area of required study for any new options trader (after pricing),synthetic positions...a big part of the jigsaw puzzle IMO.

It's wise to learn how options are priced, greeks, IV etc even if only writing CC's You will be able to account for everything via the greeks, in this case, delta. Cheers