SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Option Strategies
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: robert b furman who wrote (1859)2/8/2017 3:43:01 PM
From: Slumdog  Read Replies (1) of 2591
 
Hi Bob,

Just a back of the napkin
hypothetical synthetic long stock
strategy for COHU using Mar 12.50 strike
Long call @ .75 Short put @ .40
net debit = .35

Share price now: 12.90

So you can be long the 12.50's out
to march expiry for net .35

Break even 12.85

So with share price above 12.85, position acts like
an ITM option or one share of stock, thus the term "synthetic long stock"

Seems like you have been willing to take
assignment on your short puts so this
strategy may be right for you down the road.

Cheers.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News