ARTICLE SYNOPSIS...Creating A Synthetic Security by Jean-Olivier Fraisse, C.F.A. Experienced investors know their goal is to maximize returns while minimizing risk. The smaller the capital invested for a profit is, the higher the return is. Using synthetic securities may
ARTICLE SYNOPSIS...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 m