Synthetic Long

Synthetic Share Definition

options, Options Play, Options trading, options trading strategies / By Steve Burns

A synthetic share of a stock is created by buying and selling stock options to simulate an options play that moves the same way that holding shares in the stock would move without the same amount of capital needed to buy the same amount of shares. A synthetic long stock position is created by buying …

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Risk Reversal Option Strategy

options, Options Play / By Steve Burns

A risk reversal option strategy play is a position that is constructed by selling short an out-of-the-money put options and also buying long an out-of-the-money call option that both have the same expiration date. The risk reversal option play simulates approximately the profit and loss of owning the underlying asset, it is also called a …

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