What is the name of this position?

[drcha]

Short 1 OTM put
Long 2 farther OTM puts
Long 100 shares

 

[rallydog]

Quote from drcha:

Short 1 OTM put
Long 2 farther OTM puts
Long 100 shares

Hmm, I must confess to not being able to put a nice sexy options name on it, but, synthetically your delta's are equivalent with two long call positions.

Two pieces are cheaper than four, something to think about.

 

[MTE]

Quote from drcha:

Short 1 OTM put
Long 2 farther OTM puts
Long 100 shares

Long stock + 1 long put = long call
Short put + 1 long put = short put vertical

So you have a short put vertical and an ITM long call. There is no specific name for this particular position.

 

[ajcrshr]

+c=+u+p

c=1+2-1

2 long calls

 

[jwcapital]

Bull put spread + a long underlying with a protective put

=bull put spread + synthetic call. As mentioned above, in terms of delta, a bullish (positive) stance.

 

[F112358]

doggy fashion?

 

[syswizard]

Quote from jwcapital:

Bull put spread + a long underlying with a protective put

=bull put spread + synthetic call. As mentioned above, in terms of delta, a bullish (positive) stance.

yes, but the delta is certainly not equivalent to two long calls. That would be the case if the puts were ITM, correct ?

 

[stoic]

I would call it a Put Backspread and Long Stock

 

[spindr0]

Quote from drcha:

What is the name of this position?

I'd call it a put protected commission generator (the synthetic)

 

[spindr0]

Quote from syswizard:

yes, but the delta is certainly not equivalent to two long calls. That would be the case if the puts were ITM, correct ?

Since the bull spread has a constant value outside of the strikes, the synthetic call is the dominant position.

So essentially, the risk profile is similar to one long call. The return is gassed above the put spread and reduced below it by the amount of the spread's net gain or debit.