Lets say stock X is trading at $206.50
If you buy 100 shares and buy 2 ATM puts you have a synthetic straddle.
However, what if instead of buying 2 ATM you bought 5 .20 delta OTM puts?
In this strategy you are also delta neutral. This wouldn't be considered a straddle though. What would this strategy be called? Anyone trade something like this?
If you buy 100 shares and buy 2 ATM puts you have a synthetic straddle.
However, what if instead of buying 2 ATM you bought 5 .20 delta OTM puts?
In this strategy you are also delta neutral. This wouldn't be considered a straddle though. What would this strategy be called? Anyone trade something like this?