Ion Options
ION Options Courses - Synthetic Positions

Synthetic Positions
To be scheduled. See upcoming events.
There are many advantages to using options in your trading and investing. We have all heard of the advantages offered by the flexibility of options. But, if you do not understand Synthetics Positions (Synthetics) then you are not employing the full benefit of options' flexibility. The concept of synthetics has always been fundamentally important to understanding options. Synthetics show the mathematical relationship that exists between the stock, a call, and its corresponding put. This mathematical relationship not only designates the price of these instruments in relation to each other, but also shows how a call can be changed into a put, or a put can be changed into a call by simply adding the stock to the equation. That relationship is the foundation for position morphing. Morphing is the process by which one position is changed into another by adding or subtracting a component of the position. In essence, you are changing one position into another. This concept is critical in position management. Without synthetics, there really wouldn't be position management, only the opening and closing of positions. Today, with new SEC margining requirements making synthetic positions a viable alternative, synthetics are the new hot topic. The study of synthetics not only aids in your understanding options but also adds to your profitability by enhancing returns and managing risks. The Synthetic Position Course will include topics such as: Synthetic stock Synthetic call Synthetic put Put/Call parity Morphing Put/Call skew Effective Price Reversal/Conversion Arbitrage Estimated for 6 two-hour classes 

"Ron does a fantastic job teaching option theory, not only the "what an option is", but how to put that knowledge to use. Add to that, Ron's invaluable insight to the "behind the scene" aspect of market action and you have an unmatched option education experience."

Dave N.
Denton, TX

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