What's your thoughts of buying stocks through synthetic long stock? By buying call options and selling put options at the same price and same expiry date?

This reduce the cost of holding it. yet also increase the gains from it.
Any thoughts ?

Discussion (3)

What are your thoughts?

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Investing Curator

29 Nov 2020

You probably want the delta exposure i.e. the performance of the underlying stock. However, if you do not understand how volatility & risk reversals affect the value of the options you are buying / selling, i suggest you stick with plain old stocks.

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Do you think it is wise to buy stocks after ex dividend date? Would buying stocks after dividend date for blue chips stock good for long term investment since price drop after that?

What can I do if I have used DBS cash upfront to buy stock, but I feel like selling before settlement date if there is major sell-off or stocks have risen to my targeted price?

How do I choose a call option’s expiry date, strike price to speculate in?

Isn't it a guaranteed profit when traders short a stock before ex date and buy back on/after ex date since it is guaranteed that the stock price will fall on ex date?

Would like to start long term investment, 10 years or more. Are there stocks to buy and hold for long period, instead of keep selling and buying? Which online broker to consider?

Do you think it is wise to buy stocks after ex dividend date? Would buying stocks after dividend date for blue chips stock good for long term investment since price drop after that?

What can I do if I have used DBS cash upfront to buy stock, but I feel like selling before settlement date if there is major sell-off or stocks have risen to my targeted price?

How do I choose a call option’s expiry date, strike price to speculate in?

Isn't it a guaranteed profit when traders short a stock before ex date and buy back on/after ex date since it is guaranteed that the stock price will fall on ex date?

Would like to start long term investment, 10 years or more. Are there stocks to buy and hold for long period, instead of keep selling and buying? Which online broker to consider?