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Strategies & Market Trends : Option Strategies
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From: Elroy12/6/2023 8:06:08 AM
   of 2591
 
Ho Folks,

I'm interested to put on a "synthetic long" for QCOM.

Specifically I will buy a QCOM Jan '25 call, and sell a QCOM Jan '25 put.

Curious if anyone has opinions on which strikes for the put and the call are the best to use to put on the trade. I'm new to this synthetic call idea.

I like the fact that if I hold both the put and call to expiration it will be long term capital gain (if it's a gain).

Since I think there's a good chance QCOM goes up over the next 13 months, and today QCOM is about $130, does it make sense to buy a $160 call and sell a $160 put, thereby making option premium on the trade, and then benefiting if QCOM ends up above $160 + the call premium on Jan '25 expiration? I like the idea of the trade today generating some cash (worth 5% per year at current rates). Or is it smarted to do the trade with at the money $130 puts and calls.

Any options traders knowledge is appreciated.
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