Put/call parity. Same strike puts and calls are equal in price minus carrying costs. If they weren't you could use conversions and reversals to...
Are you speaking of a same strike call and put? If so then the answer is no.
No need. They're the same. Hence the word equivalent.
No you don't. I was listening to a broker scream about what a scam the VIX options where when his call didn't make him as much money as he...
Reaganomics is a wonderful thing.
What's not to understand. The strategy is simply long the S&P500. Such a brilliant, simple, and elegant idea...except when it goes down, but I...
Options in and of themselves are a zero sum game (like all derivative contracts). For every specific contract there is a winner and a loser....
Be careful or you'll find a lot of Condor groupies on your tail. They flock to ET in droves...
I thought debit = exposure with debit spreads...
Sorry Bob, I must have misunderstood you. In the first post on page 8 you describe buying calls and selling stock. My posts were in reference to...
I'm not following. Are you referring to the synthetic on the long option or synthetic on the gamma scalp? When would the spread on spot be...
Bob, I mean no disrespect to you nor your intelligence. However, I don't see how intelligence, experience, or knowledge of greeks has any...
I wouldn't agree that they're more dangerous but certainly less advantageous for the customer. You're right though. It is laughable that most...
From a risk and reward perspective you are correct. A = B and B = A. Practically speaking there are commissions and spreads that exist when...
I'm not sure I understand the question. Then again you might be jesting and I just don't get it. The synthetic is the one with an extra position.
None of this really matters to the main problem here. If we are in agreement that synthetics are real (and I hope we are) then you're "Covered...
No, you don't need to know synthetics or greeks to trade successfully if you're a good directional trader. However, having a better understanding...
Just to clear my mind on Schwab. They let you do synthetic short calls but not natural. They don't let you sell puts (naked). Do they let you...
Do a search on "gamma scalping" here on ET for info on the synthetic straddle you were refering to. People have claimed success with gamma...
I've found the primary reason for reading and posting on ET (and other boards) is for pure entertainment value.
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