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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (39514)	10/11/2003 10:54:10 PM
From: TobagoJack	Read Replies (3) \| Respond to of 74559

Hello Haim, <<synthetic Put and Calls>> sounds exciting, and I am all ears when anybody comes back. In the mean time, what say you on possibility of Euro at 1.5 and CAD at 1.0 within 36 months? Chugs, Jay

To: Haim R. Branisteanu who wrote (39514)	10/12/2003 12:47:47 AM
From: smolejv@gmx.net	Read Replies (2) \| Respond to of 74559

Hi Haim: "Synthetic Put: a security which some brokerage firms offer to their customers. The broker sells stock short and buys a call, while the customer receives the synthetic put. This is not a listed security, but a secondary market is available as long as there is a secondary market in the calls." from "Options as strategic investment" by Larry G. McMillan () RegZ dj he even signed it for me 8-)!

To: Haim R. Branisteanu who wrote (39514)	10/12/2003 11:01:56 PM
From: que seria	Read Replies (1) \| Respond to of 74559

Haim: I have a slightly different take on synthetics. You asked about synthetics puts and calls, and got answers about those. More interesting are synthetic long or short positions in the stock, accomplished via options. Those involve selling puts and buying calls (synthetic long), or buying puts and selling calls (synthetic short). The option positions are thus "real," but in combination they make a "synthetic" long or short stock position. I've used this technique to my benefit (synthetic longs on gold stocks) and detriment (synthetic shorts on tech stocks that powered upward). I've sworn off synthetic shorts for now, but if gold goes down hard I'll be loading up on synthetic longs. The object is to eliminate or reduce the time deterioration of the options, which usually makes them bad bets. (If you have a zero premium synthetic trade--sometimes called a collar--the premium received offsets the premium paid unless the trade goes against you past the strike price on your short option side of the collar). I usually go out of the money for safety, and far out in time, essentially betting on a big rise or fall. A key to my long collars is that I only do them when I'd buy the stock at the price at which I've sold a put on it. Not many!