P Pinozi Nov 2, 2010 #21 Quote from jamesbp: You could create a bearish OTM put calendar by: - lodging stock - selling ITM Call for front month - buying OTM Put for back month Stock + Short Call = Short Put. The only condition is that credit for Call >= debit for Put. James More... Sorry I misread, yes this would be a synthetic put cal. I'll have to fool around with some prices to see if I can apply it in the real world
Quote from jamesbp: You could create a bearish OTM put calendar by: - lodging stock - selling ITM Call for front month - buying OTM Put for back month Stock + Short Call = Short Put. The only condition is that credit for Call >= debit for Put. James More... Sorry I misread, yes this would be a synthetic put cal. I'll have to fool around with some prices to see if I can apply it in the real world
S spindr0 Nov 3, 2010 #22 Quote from jamesbp: Who mentioned different strikes? I assumed as we were talking calenders, it would be implicit that these would be same strike, different month spreads. More... Three repliers inferred different strikes so your explanation wasn't clear. Implicit understanding isn't alsways a given on ET Be that as it may, the inference was wrong so my bad.
Quote from jamesbp: Who mentioned different strikes? I assumed as we were talking calenders, it would be implicit that these would be same strike, different month spreads. More... Three repliers inferred different strikes so your explanation wasn't clear. Implicit understanding isn't alsways a given on ET Be that as it may, the inference was wrong so my bad.
