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Thursday, April 24, 2014

SPY Jan 2015 Synthetic Long Stock

Watch my YouTube video:  How to use options to simulate a long stock position (Synthetic Long Stock).


4/10/2014

buy (to open) 1 January 2015 $184 call option at $9.07
sell (to open) 1 January 2015 $184 put option at $10.36

I received $129.

Reasons for placing this trade:  SPY had been "oversold."
This is a "double bullish" trade.  Both options are at-the-money.


4/24/2014

sell (to close) the call option at $10.65
buy (to close) the put option at $8.64

I received another $201.

NET PROFIT:  $312.82 (in 2 weeks)

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