not quite.... What bearing does being short calls( from the vert) have to do with deciding if one should exercise their deep call?? What exactly is a synthetic call?? you should look at the risk profile pre exercise and post..
Synthetic bull cs: +95P + (100 shares) stock = long synthetic 95C. Long synthetic 95C - 105C = long synthetic 95/105 call spread. The components are put + stock - call. Synthetic 95 call - natural 105 call = 95/105 bull call spread. The payoff of the synthetic is the same as the natural (95/105 cs). The dissection shows you where you have the embedded put.
Jesus, look at the put premium for the call leg you're buying. A bull spread in calls is stock - collar. Shares and a bear risk reversal. You think that you're shorting vol but an ATM vert is long vol. Just buy the call DITM and price the same strike put. The put will tell you what it's costing you in relation to your short call. Hint, ATM you're at a debit. A BWB makes sense. You're short two ATM calls. You're DITM on the long call and the upside wing is prot against a two lot ATM. A $98 credit against $902 risk. CC will run you stock margin less credit in the one lot call. CC at 90 only credits 1.6 extrinsic.
It's been a great morning. Several new positions. Oh, by the way, I actually do know some Greeks: There's Voula and Sam who own the The Forum restaurant, Debbie and Gus who own The Omega restaurant... I can say: Good Morning, how are you? "Thank you" and "You're welcome". Have you ever had, Moussaka? It's kinda like lasagna. The Option Greeks: BFD.
You're the only one talking about 'em. https://www.elitetrader.com/et/search/19654491/?q=greeks&t=post&o=date&c[thread]=382137
That's not how I trade. LOL When I trade, I just calculate how much money I am going to make with all the different possible scenarios. I don't think of it in terms of equivalent of synthetic stuff. I mean synthetic instruments are great for analysis and to show you an overall picture of profit/loss but when I trade, I look at how much money I will be getting/losing irl. Models are just models. At the end, it's the real-time price that matter. And when I look at risks, I look at again in terms of $$ that I will be losing. This is how much money I will lose, this is my risk, that's it. You always complain that I over complicate things but my methods are actually very simple and when I present my simple approach, you think it's too simple and you make me do all kinds of analysis in synthetics, profiles and whatever. LOL At the end of the day, I guess we just look at things differently and approach trading differently.