Question about synthetics

Discussion in 'Options' started by Eliot Hosewater, Jul 18, 2007.

  1. Since a covered call is considered to be the equivalent of a naked put, can you construct an Iron Condor or Butterfly starting with long stock?

    I've tried the obvious, like writing a call on the stock (=short put), then adding a lower long put, and then a higher bear call spread, but the risk graph doesn't look anything like I want it to. I am doing this on the TOS analyze screen.
  2. Long [short] stock; short 2 * calls [puts]; long strangle = synthetic iron fly. There are a ton of permutations, but this doesn't reduce.