Synthetically Speaking by Paul J. Kluskowski
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:5 (16-20): Synthetically Speaking by Paul J. Kluskowski
How do you transform your premium from debit to credit? Think synthetic positions.
Ask anyone in the know and they will tell you that the risk/reward profile of a long option is limited risk with unlimited reward potential. The built-in assumption is that the premium is at risk. What if there was a way to change this? What if the premium could be transformed from debit to credit, leaving you with
a risk/reward spectrum that was small gain to unlimited
gain, versus small loss to unlimited gain? Impossible,
you ...
AUTHOR: Paul J. KluskowskiDATE: MAY 2006SUBJECT: Trading Options