tag:blogger.com,1999:blog-6071858601936241385.post5098185843266450648..comments2023-11-03T02:48:26.128-07:00Comments on Sea Of Opportunity: Options 101: Synthetic Positions & An Example of a Synthetic Buy-writeSea of Opportunityhttp://www.blogger.com/profile/08260649905728626617noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6071858601936241385.post-2622205017692844712011-03-07T15:55:30.723-08:002011-03-07T15:55:30.723-08:00SM ur are correct... personally I don't hold s...SM ur are correct... personally I don't hold synthetic shorts/longs overnightSea of Opportunityhttps://www.blogger.com/profile/08260649905728626617noreply@blogger.comtag:blogger.com,1999:blog-6071858601936241385.post-68295841813866200652011-03-05T18:49:57.146-08:002011-03-05T18:49:57.146-08:00"Synthetic short stock" & "Synt..."Synthetic short stock" & "Synthetic long stock" are actually misnomers. The trades you've suggested are effectively forward contracts by static replication (not exactly either, due to possibly early exercise on short call options). <br />Pricing of such a trade will be close to or exactly the cost of carry.S Mhttps://www.blogger.com/profile/08238316510621693447noreply@blogger.comtag:blogger.com,1999:blog-6071858601936241385.post-89301914838759938412011-03-05T17:01:51.311-08:002011-03-05T17:01:51.311-08:00Great! Thanks for the post...I understand it more ...Great! Thanks for the post...I understand it more now. I see what you mean by saying they are the same thing too! have a great weekendBrianhttps://www.blogger.com/profile/09302760170004018001noreply@blogger.com