The spot for SPX is ES, at least I don't know anyone that drives SPX options with anything else. But let's just make it ES then. I have to think if American vs European would affect anything, but I doubt it.
I will sell you the Sep 915 ES put at mid tied to ES, and I will go long the synthetic equivalent put also at mid, on Monday at open.
lol, it's hardly perfect. Yeah, fine, ES it is. I will screen capture the ES atm call and put market on Monday at 10am ET along with Sep ES futures.
10:12am ET Long natural call, mid: 17.00 Long synth call (spot and put, mid): 17.125 Long synth call (spot offer, put mid): 17.25 Long natural call, taker: 17.25 Long synth call, taker: 17.50
A little off topic but here is an interesting paper on put/call parity. I had a feeling that this predated Hans Stoll's famous paper. It is apparently also used to help some of the Muslim community obtain mortgages as they are not allowed to "pay interest". Some of you may find this light reading. http://lsr.nellco.org/upenn_wps/49/
Both. When I am interested in paying for a stock but only at a specific price and don't mind collecting some premium while I wait. When I am long a stock and I want to sell at a specific price but don't mind collecting some premium while I wait.
Maybe the only advantage it's psychological: If you own a covered call, and the stock/ETF goes down, then you say: Nah, it doesn't matter I'm owning this stock for the long run. Meanwhile I kept 100% of the option premium. If you shorted a put, and it goes down, you take a "full loss", and profits are not easily seen.