Creating a synthetic short stock with long call(s) and long put(s) possible?

Discussion in 'Options' started by earth_imperator, Jun 30, 2022.

  1. What about ITM?
     
    #11     Jul 4, 2022
  2. Baozi

    Baozi

    ITM most of the time trades worse than OTM.. lower volume wider spreads
     
    #12     Jul 4, 2022
  3. Spread is irrelevant if there is some slight volume, b/c then one just can place a MidPrice limit order between Bid and Ask, and it necessarily has to get filled, when as said there is some slight volume.
     
    #13     Jul 4, 2022
  4. LM3886

    LM3886

    Why does it have to get filled at MidPrice? Your other side of the trade, typically a market maker, is not going to fill your ITM order if she doesn't get a profit from the spread. You are more likely to be filled at ask when buying and bid when selling. That's where the volume comes from.
     
    #14     Jul 4, 2022
  5. Baozi

    Baozi

    I'm wondering if we are being trolled :wtf:
     
    #15     Jul 4, 2022
  6. Overnight

    Overnight

    It's the third thread in a week about covered calls and whatnot. You are not being trolled...You are being destroyed mentally by a simpleton who does not know WTF options are.

    He's smart that way. Wear you down until you give him the answer he WANTS, not the answer that is real. He apparently dismissed Charles Schwab's answers. So what hope do YOU guys have to help this person?

    Waste of time and breath IMHO.
     
    #16     Jul 5, 2022
    Baozi likes this.
  7. Baozi

    Baozi

    if you enter an order at mid but the spread is still wide, many times there will be algos trying to get in front of you to catch those few real market orders. If the underlying doesn't go your way (I.E. against you), you could be left waiting for a long time.
     
    #17     Jul 5, 2022