https://www.youtube.com/watch?v=8Y-AMXG_BX0
Option Greeks Misinterpretation: Selling Double CALL Options instead of Synthetic Futures is a good example.Register for Options Trading Online Workshop - ht

https://www.investopedia.com/articles/optioninvestor/08/synthetic-options.asp
Key Takeaways. A synthetic option is a way to recreate the payoff and risk profile of a particular option using combinations of the underlying instrument and different options. A synthetic call is

https://www.kiplinger.com/investing/options/options-greeks-explained
Options Greeks: Theta. "By definition, options are contracts that entitle the holder to buy or sell shares of the underlying asset at a specific price by a specific date," writes Volk in her

https://www.investopedia.com/terms/s/syntheticfuturescontract.asp
Synthetic Futures Contract: A position created by combining call and put options for the purpose of mimicking the payout schedule and characteristics of a futures contract.

https://www.investopedia.com/trading/using-the-greeks-to-understand-options/
Key Takeaways. Delta, gamma, vega, and theta are known as the "Greeks," and provide a way to measure the sensitivity of an option's price to various factors. For instance, the delta measures the

https://www.wallstreetmojo.com/synthetic-futures/
Let us look at how each of these methods can be used to create synthetic futures: Options: To create a synthetic futures contract using options, an investor would buy a call option and sell a put option on the same underlying asset with the same expiration date. This position is known as a synthetic long futures contract.

https://blog.sensibull.com/2023/09/29/synthetic-futures-on-sensibull/
What is it? Synthetic futures is an option strategy that acts like a futures contract. Long synthetic futures - Buying a call option of a strike, and simultaneously selling the put option of the same strike is the same as buying a futures contract.; Short synthetic futures - Selling a call option of a strike, and simultaneously buying the put option of the same strike is the same as

https://quant-next.com/option-greeks-and-pl-decomposition-part-1/
We see on the chart below that the P&L of the option between t and t + δt is mostly explained by its directional exposure, its delta P&L. The delta P&L is positive (0.91 = -2.52 x -0.36) as the stock is going down (-2.52) and the delta of the put option is negative (-0.36). Theta, the time decay of the option, is the cost of gamma.

https://prd-web.optionseducation.org/advancedconcepts/understanding-options-greeks
Understanding Options Greeks. When determining how options may react to a given change in some of the variable pricing inputs, investors turn to the Greeks for guidance. The most commonly used Greeks are Delta, Gamma, Theta, Vega, and Rho. Greeks are not a guarantee of exact option premium changes, but rather a theoretical guidepost that gives

https://investinganswers.com/dictionary/s/synthetic-futures-contract
For instance, a synthetic long futures contract on stock XYZ would comprise a put option and a call option as described, both of which would have the same expiration date of (e.g. 31 December 2009) and strike price (e.g. $75). Why Does a Synthetic Futures Contract Matter? A synthetic futures contract allows an investor to benefit from the

https://optionalpha.com/lessons/options-pricing-the-greeks
For example, a stock priced at $100 has a $110 call option expiring in 60 days with a delta of .30 and costs $2.00. If the underlying stock moves up to $101, the option should now be worth $2.30. Owning 100 shares of the stock would have realized a gain of $100. The .30 delta option realized approximately 30 shares worth of value, or $30.

https://www.investopedia.com/terms/s/synthetic_call.asp
Synthetic Call: A synthetic call is an investment strategy that mimics the payoff of a call option . A synthetic call is created by purchasing the underlying asset, selling a bond and purchasing a

https://quant-next.com/options-greeks-and-pl-decomposition-part-3/
The P&L of an option strategy between t and t+δt can be decomposed with the different first order and second order Greeks: Theta, delta, vega, rho are the first order Greeks: The theta or time decay measures the rate at which the value of the option declines due to the passage of time. The delta of an option measures the change in the option

https://www.supermoney.com/encyclopedia/synthetic-futures
A synthetic futures contract is a financial instrument used in derivatives trading. It mimics the behavior of a standard futures contract but does not involve direct agreements between counterparties. Instead, synthetic futures contracts utilize put and call options with matching strike prices and expiration dates to replicate the performance

https://www.optionsplaybook.com/option-strategies/synthetic-long-stock
The strategy. Buying the call gives you the right to buy the stock at strike price A. Selling the put obligates you to buy the stock at strike price A if the option is assigned. This strategy is often referred to as "synthetic long stock" because the risk / reward profile is nearly identical to long stock. Furthermore, if you remain in this

https://zerodha.com/varsity/chapter/synthetic-long-arbitrage/
The idea with a Synthetic Long is to build a similar long Future's payoff using options. 6.2 - Strategy Notes. Executing a Synthetic Long is fairly simple; all that one has to do is - Buy the ATM Call Option; Sell the ATM Put Option; When you do this, you need to make sure - The options belong to the same underlying; Belongs to the same

https://www.wallstreetmojo.com/synthetic-options/
A synthetic long call is also known as a synthetic call option. This process starts when an investor purchases and holds some assets or securities. Additionally, the investor buys an at-the-money put option on the same securities to prevent the risk of losing money against depreciation in the asset's price. This options strategy protects the

https://www.reddit.com/r/options/comments/sc6ut9/shares_vs_leaps_vs_synthetic_future/
a synthetic long (i.e sell an ATM put and buy an ATM call at the same strike and expiration). What are the deciding factors when choosing the best option? 100 shares is great for buying power; ITM LEAPs give the exposure with less cash tied-up; and a synthetic long ties up little to no cash but isn't great for buying power.

https://www.reddit.com/r/thetagang/comments/1drhi64/does_anyone_sell_itm_covered_calls/
Holding shares and selling a call has an equivalent payoff as shorting a put at expiration. Shorting puts is a bullish position. There are a couple of differences between having a short put and having a synthetic short put such as: Early exercise of American options Being long the underlying might cost cash upfront

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/learning-center/Transcript_Synthetic-options_v2.pdf
Getting to know synthetic options Speakers: James Savage & Chase Cotnoir James Savage: Good afternoon, good morning everyone, thanks for joining with us in this nice hour-long Synthetic Option Positions webinar that we have planned for you. And in case you aren't familiar with myself or our team, so

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/SyntheticOption_Webinar.pdf
Synthetic positions can be used to change one position into another when your outlook changes or your expectations shift. Have a method of analysis for time, direction, and volatility. You can use the Profit and Loss calculator to simulate the synthetic position and evaluate the option Greeks. You can use the Fidelity Notebook tool to capture

https://www.finideas.com/future-vs-options-which-is-better-for-trading/
Risk Management: As Futures is having only 1 Greek i.e. Delta, you can't manage Risk easily. While if you purchased it through Options you can manage its risk easily as there are other Greeks like Delta, Gamma, Vega, Theta, Rho, Volga, Vanna etc. available for Options.. There are other lots of benefits available for Synthetic Future

https://www.reddit.com/r/finance/comments/ydp9r/synthetic_futures_question_putcall_combo/
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