What's the purpose of a synthetic long position?

Update: asked and answered by myself.

MSTR @ 353.69

Buy 1 350 call @71
Sell 1 365 put @73

Why not just buy 100 MSTR shares for $35,000? You are going to need $36,500 in margin anyway for the short put. Where are you creating any leverage here other than the $200 you collect? I guess synthetic longs only make sense when the margin allowance is greater than 1:1? If it was 1:4 then you would only need to put up $9125...but the position would perform as 100 MSTR shares...whereas $9125 would only get you 25.7 MSTR shares.

 

The 350/365 is trading at 30 in Dec. All of Dec.

 

Those were pm numbers...this is what I would be looking at but I'm waiting for $278 in December. It's probably just going to ABC here ("triangle" to the great unwashed) so maybe it returns back to where we are on the B wave at 390-278 I make 10-12k on the call but still stuck holding the short put. A 9 DTE 245 put (112 otm) has current ask of 3.15 so I only make 7k. Doesn't seem worth it...I could make more in dividends just holding MSTY

 

do you have an opinion on skew?

 

Oops.

I was calculating as 31.50 or $3150 to close the short put, but it would only be $315 ...still not sure its worth the trouble of having 30k in margin tied up for a month.

 

I might as well only sell the short put and bank $6,600.

 

我希望你不要成为这个市场的赌徒。

 

Erica, perché non traduci in inglese quello che scrivi?

 

What's the purpose of a synthetic long position?

-cheaper cost with options. You are not putting in the whole $35K+ all in one shot.

 

Not.