June 2012
Intermediate to advanced
272 pages
4h 37m
English
book
Profiting with Synthetic Annuities: Option Strategies to Increase Yield and Control Portfolio Risk
by Michael Lovelady
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6. Generalized Synthetic Annuities
The covered SynA rules are more restrictive than necessary for an experienced options trader. Within the SynA framework, you have a great deal of flexibility in setting performance targets. If you have higher option approval trading levels, you can set up and manage SynA’s in many ways.
This chapter addresses SynA design flexibility. With a CSynA, you are restricted in the amount of theta you can generate. The only theta-generating options you have available are short calls, and you are limited in how many you can sell. With the generalized SynA, you can create additional theta by overselling calls and selling puts. A revised investment profile and a Deere example illustrate theta leverage in this chapter.
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I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.