With the Federal Reserve ready to embark on a new round of free money, here’s an options strategy that also has a ‘free’ or no money down way to be long on stocks.
Of the many options strategies that provide leverage, one of the most interesting is synthetic long stock. This combines a long call and a short put opened at the same strike and expiration. The name “synthetic” is derived from the fact that the two positions change in value dollar for dollar with changes in 100 shares of stock.
However, the cost… Continue reading at StockNews.com