Skip to product information
1 of 1

Technical Analysis, Inc.

Stocks & Commodities V. 43:10 (16–20): Understanding The Trade-Offs Of A Synthetic Covered Call by James Leahy

Stocks & Commodities V. 43:10 (16–20): Understanding The Trade-Offs Of A Synthetic Covered Call by James Leahy

Regular price $3.95 USD
Regular price Sale price $3.95 USD
Sale Sold out
Quantity
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 ...
View full details