Strategy

[MTE]

Quote from Chuck Krug:

i would never short a put without the underlying

And yet you've just done that by buying 100 DIA and shorting 1 sep 125 call!

 

[Chuck Krug]

i understand what you want to say

 

[atticus]

Quote from Chuck Krug:

i understand what you want to say

The practical benefit to understanding synthetics is avoidance of a position you would never knowingly take. Case in point, you would never sell a naked put, yet that's exactly what you've done. Made worse by legging into the synthetic.

 

[Chuck Krug]

but i still think that being long xyz and short the call is safer than being short the put
especially in a portfolio that is long and short stocks

 

[MTE]

Quote from Chuck Krug:

but i still think that being long xyz and short the call is safer than being short the put
especially in a portfolio that is long and short stocks

You can think what you want, but the reality is that the risk is exactly the same.

 

[joneog]

Quote from Chuck Krug:

but i still think that being long xyz and short the call is safer than being short the put
especially in a portfolio that is long and short stocks

AHHHHHHHHHHHHH

 

[Chuck Krug]

maybe because i find it harder to manage risk/sizing with options

 

[Chuck Krug]

sorry joneog
i didn`t mean it

 

[spindr0]

Quote from Chuck Krug:

but i still think that being long xyz and short the call is safer than being short the put
especially in a portfolio that is long and short stocks

Can you explain why? A market example would be helpful

 

[MTE]

Quote from Chuck Krug:

maybe because i find it harder to manage risk/sizing with options

If you can sell 1 call then why do you find it harder to size 1 put?