I'm sure this is in some book somewhere or on the internet but... I was playing around in TOS, and thought about the collar discussion. Then I got thinking... What if I bought synthetic stock -Short ATM Put -Long ATM Call Then I protected it? -Short OTM Call -Long OTM Put How is this different than simply buying a Call vertical? I know commissions will be higher, but not enough to negate the premium. When I did the synthetic on MOS-N (SEP Options), unless I'm mistaken, I get a credit for this transaction. Your greeks are the same as the vertical, and your risk is technically the same, except with the synthetic, your cash is in your account covering the position, whereas in the vertical, its sitting in the market. Receiving the premium for the synthetic makes it cheaper... unless I'm missing something. I suppose this could be done with bearish view too. Anything wrong with this approach?