What Option Strategies would you use in a Run Away Market ?

Discussion in 'Options' started by kevinqc, Sep 23, 2007.

  1. spindr0

    spindr0

    Vertical spread is equivalent to a collar. Calls are more expensive than puts due to carry cost.

    Fine if stock moves up. Not fine if down.

    Synthetic stock is long call and short put. Adding the long put makes it the equivalent of put protected stock. Avoid the extra commissions and slippage unless insufficient funding to buy stock.
     
    #11     Oct 12, 2007