There are ways to replicate the (sic) "income" on a synthetic covered call without variation-margin, but you know it all, so I'll let you figure it out.
Hmm. sorry, no, in posting #107 I don't see any 2015 mentioned. Hmm. sorry, I don't get it. 6% profit annually isn't enough IMO, at least not for me. For me it should be at least 25% p.a., just my humble opinion... The whole tricks using margin and leverage have the sole purpose of increasing the profit, ie. multiplying by the leverage, which is simply this multiplication factor: 1 / (own_money / margin_or_loan) And "cushion" usually is used in conjunction with stop-level (stop or trailing stop).
I'm out. I don't help the indignant-types. Here's where you stated 2015: I did a quick scan of the S&P500 stocks and found that there are much better stocks suited for this strategy, for example PEP (Pepsi) Jul 15 Puts with strike $90 for about $1.70 premium,
This is the expiration date "the 15th of July" (in current year)!!! ;-))) The 15 does not mean the year 2015! ;-)
Specifying the day explicitly makes the day calculation easier. Otherwise one would have to look up in the calendar...
At this time I'm concentrating myself wholly just on put selling only. No synthectics and no other options selling strategies which just would distract me and complicate the learning process. Because I need to grasp all facettes of this througly first, and only after that can I continue studying the other alternatives...
Dude you are going to get so beat down - you're not heeding anyone's advice and this is classic "I can make a boatload of money selling options!!!" naive stuff. Repeat after me: NO. FREE. MONEY.
I would say this example is just distracting/distorting from what is mainly discussed here, ie. the recent PEP example. Why do you do that all the time in your postings? Ie. you also tried to bring in synthetics etc... I need to concentrate myself on just the most basic variant of this plus the application of margin. But yours is IMO yet another different and hard to understand variant, so I don't get it, because at spot=90 there should no loss happen for a strike of 90...