That mathematical relationship is the foundation for position morphing. “Morphing” is the process in which one position is changed into another by adding or subtracting a component of the position.
Options University – Ron Ianieri – Synthetic PositionsDescription
There are many advantages in using options in your trading and investing. One of the main advantages of options is their extreme flexibility. You probably are aware of that fact already. But if you do not understand Synthetic Positions (or Synthetics,) then you are not getting the full benefit of option’s flexibility. This flexibility is more powerful than ever in the current market… and will be increasing over the next several years. Options University – Ron Ianieri – Synthetic Positions Can you see why the proper use of Synthetics gives you maximum flexibility when trading options? That mathematical relationship is the foundation for position morphing. “Morphing” is the process in which one position is changed into another by adding or subtracting a component of the position. This concept is critical in position management. Without synthetics, there really wouldn’t be position management, only opening and closing of positions. With the new SEC margin requirements making synthetic positions a viable alternative, Synthetics are the new hot topic. The study of Synthetics not only aids in your understanding of options, but also adds to your profitability by enhancing returns and managing risks. Download immediately Options University – Ron Ianieri – Synthetic Positions Here’s your chance to discover the little-known techniques using the power and flexibility of Synthetics! The Synthetic Position Class will include topics such as:
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