Synthetic option positions can help provide options traders with new opportunities to manage trades and risk. Join representatives from Fidelity's Trading Strategy Desk® as they discuss how synthetics may be used to change your current position into another one to better align with your outlook and changing market conditions.
During this session we will explore:
- What the basic synthetic option positions are
- How to construct basic synthetic option positions
- How to offset various types of risk
- How to change your risk profile utilizing your existing position
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade.