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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (1924)	8/11/2001 12:07:18 AM
From: Dan Duchardt	Read Replies (1) \| Respond to of 5205

Dale, Ah, another strategy for Options 201 <ggg> Can be done VERY aggressively, or with somewhat more safety. If it's done with equal numbers of short puts and long calls at the same price it is called "synthetic long stock" because the value moves dollar for dollar with stock price. Leverage is incredible. As you say, it was great when the only direction was up. Selling the call and buying the put is "synthetic short stock", and is equally effective when the only direction is down. If the guy was really smart, he always had a lot of cash and still does, and has expanded his boatload of cash going the other way. Dan