cheap MSFT synthetic 30 call for March

Discussion in 'Options' started by hajimow, Feb 19, 2008.

  1. Guess again.
     
    #21     Feb 20, 2008
  2. I'm sorry I must have misunderstood the tone of this comment. My bad.
     
    #22     Feb 20, 2008
  3. Ok wrong guess.....Would you agree you are more experienced than your average option trader, and have capitol access that most don't have? Or am I wrong again?
     
    #23     Feb 20, 2008
  4. You're mostly wrong again.

    I have pretty good insight, so I've gotten a lot of learning from what I suspect is about an average level of experience.

    I don't know what kind of capitol access I have. I wasn't responsible for burning it down in 1814 or anything, though some have suggested otherwise. I probably couldn't get special access, since I can't get my hands on huge stacks of money.
     
    #24     Feb 20, 2008
  5. Come on Commie fess up they let you right into any place you need to go in Washington all you do is flash your diplomatic credentials.
     
    #25     Feb 20, 2008
  6. It's embedded as a discount on the put. The only added costs are commish, edge, and perhaps an increase in haircut. Do the synthetic if you're expecting a large drop in STIR or a surprise dividend increase. I would assume edge-loss would outweigh any benefit from rate/dividend forecasting. In other words, just go ahead and buy the natural call.
     
    #26     Feb 20, 2008