Synthetic ShortStraddle for CashAccount

[earth_imperator]

Can someone test/analyse/comment this multi-leg construct for a CashAccount,
using the same one underlying ticker in all legs:
1 CoveredCall + 1 CashSecuredPut + 2 LongPuts
for example using ATM and DTE=60 or so. The 2 LongPuts can also have longer DTEs.
Isn't the PnL diagram for the whole construct looking much like that of a ShortStraddle,
at least for the initial timespan of up to the shortest DTE?
Of course by varying the strikes it should be possible to get an outcome that resembles a ShortStrangle.

 

[earth_imperator]

Can someone test/analyse/comment this multi-leg construct for a CashAccount,
using the same one underlying ticker in all legs:
1 CoveredCall + 1 CashSecuredPut + 2 LongPuts
for example using ATM and DTE=60 or so. The 2 LongPuts can also have longer DTEs.
Isn't the PnL diagram for the whole construct looking much like that of a ShortStraddle,
at least for the initial timespan of up to the shortest DTE?
Of course by varying the strikes it should be possible to get an outcome that resembles a ShortStrangle.

A better and simpler construct seems to be the following one, ie. a Collar:
1 CoveredCall + 1 LongPut

 

[getthatintoya]

Can someone test/analyse/comment this multi-leg construct for a CashAccount,
using the same one underlying ticker in all legs:
1 CoveredCall + 1 CashSecuredPut + 2 LongPuts
for example using ATM and DTE=60 or so. The 2 LongPuts can also have longer DTEs.
Isn't the PnL diagram for the whole construct looking much like that of a ShortStraddle,
at least for the initial timespan of up to the shortest DTE?
Of course by varying the strikes it should be possible to get an outcome that resembles a ShortStrangle.

This is a calendar if strikes are the same.

 

[getthatintoya]

A better and simpler construct seems to be the following one, ie. a Collar:
1 CoveredCall + 1 LongPut

This a bull vertical totally different profile to other setup you posted.

 

[earth_imperator]

@getthatintoya, thx for your analysis. I'm after a construct that gives roughly a similar result like a ShortStraddle (ie. like a roof), but which can be used in a CashAccount.

 

[getthatintoya]

@getthatintoya, thx for your analysis. I'm after a construct that gives similar result like a ShortStraddle, but which can be used in a CashAccount.

I guess by cash account you mean no naked options if so the following will get you very close to what you want.
Buy 100 XYZ shares at 100 sell 2 105 calls buy 1 120 call. Syn short straddle with a call kicker wing.

 

[earth_imperator]

I guess by cash account you mean no naked options if so the following will get you very close to what you want.
Buy 100 XYZ shares at 100 sell 2 105 calls buy 1 120 call. Syn short straddle with a call kicker wing.

@getthatintoya, in a CashAcct only the following constructs are possible: LongStock, LongCall, LongPut, CoveredCall (ie. LongStock + ShortCall), and CashCoveredPut (ie. ShortPut plus Cash for Strike - Premium).

This means, selling 2 calls requires to have 200 shares of the underlying stock...

 

[getthatintoya]

@getthatintoya, in a CashAcct only the following constructs are possible: LongStock, LongCall, LongPut, CoveredCall (ie. LongStock + ShortCall), and CashCoveredPut (ie. ShortPut plus Cash for Strike - Premium).

So you can't trade verticals or calenders... forget about options then if that's all you can do from what you said above.

 

[earth_imperator]

So you can't trade verticals or calenders... forget about options then if that's all you can do from what you said above.

Hmm. I don't understand as I surely can create verticals, calendars, as well diagonals, at least using Put (then of course meaning CashSecuredPut).

 

[getthatintoya]

Hmm. I don't understand as I surely can create verticals, calendars, as well diagonals, at least using Put (then of course meaning CashSecuredPut).

Well my above example breaks down to a covered call + a bear call vertical.