What is this strategy?

Discussion in 'Options' started by frostengine, Nov 21, 2014.

  1. Lets say stock X is trading at $206.50

    If you buy 100 shares and buy 2 ATM puts you have a synthetic straddle.

    However, what if instead of buying 2 ATM you bought 5 .20 delta OTM puts?

    In this strategy you are also delta neutral. This wouldn't be considered a straddle though. What would this strategy be called? Anyone trade something like this?
     
  2. newwurldmn

    newwurldmn

    Long downside puts delta hedged.