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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (104444)	2/24/1999 10:32:00 AM
From: Mark Peterson CPA	Read Replies (1) \| Respond to of 176387

Edamo, don't mean to intrude on your discussion with GV. I have no opinion on the strategy either of you are proposing. But perhaps a formula is relevant: Stock = + call - put So, when either of you talk about creating a synthetic stock position, if you purchased a March Dell 85 call and sold the March Dell 85 put, through the use of options, you've created a synthetic long position. Similarily, Call = stock + put So, by effectively holding long stock and buying a put, you've created a synthetic call position. Also, Put = Call - stock So by shorting the stock and buying the call, you've created a synthetic put. Finally, -Put = Stock - call So you create a synthetic "put sale" put by buying the stock and selling a call (the typical buy-write strategy) Don't mean to confuse anybody here, but just offer additional information. As we know, alot of things work in the market. It's a matter of individual risk preferences that the fact that the market is a zero sum game that allows for justification for each side of the trade by the MM or the individual investor. Best regards, Mark A. Peterson