Stocks & Commodities V. 43:10 (16–20): Understanding The Trade-Offs Of A Synthetic Covered Call by James Leahy
Product Description
Understanding The Trade-Offs Of A Synthetic Covered Call by James Leahy
Using a synthetic covered call (also called a diagonal spread) requires the trader to make decisions about which strike price and time to expiration to choose. In this article, we explain some trade-offs to help you choose wisely. We’ll also show other methods of achieving a payoff and risk similar to those of a traditional covered call.
A traditional covered call is created by selling an out-of-the-money call option on stock that you already own. However, this requires a lot of capital to purchase the stock. There is a cheaper way to trade covered calls: you can use a synthetic option instead ...
Using a synthetic covered call (also called a diagonal spread) requires the trader to make decisions about which strike price and time to expiration to choose. In this article, we explain some trade-offs to help you choose wisely. We’ll also show other methods of achieving a payoff and risk similar to those of a traditional covered call.
A traditional covered call is created by selling an out-of-the-money call option on stock that you already own. However, this requires a lot of capital to purchase the stock. There is a cheaper way to trade covered calls: you can use a synthetic option instead ...
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $430! |
| Click Here to Order |