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Synthetic Strategies: Alternative Approaches to Directional Trading

Synthetic Strategies: Alternative Approaches to Directional Trading

Aired On

Feb / 19 / 2025 - 2:00 pm - EST

Mathew Cashman
OCC , The Options Industry Council (OIC)

Join Mat Cashman from the Options Industry Council (OIC) who will share his insights on synthetic long and short stock strategies created using options. Dig into how these versatile positions might offer a cost-effective alternative to buying or selling stock. Mat Cashman breaks down the mechanics of Combo and Synthetic stock positions, helping to build your mental framework by identifying potential risks and rewards of deploying these strategies and managing the associated risks.

Learning Objectives:

  • Strategy mechanics: Examine the fundamentals of how synthetic positions work and see how these strategies can be applied.
  • Risk management: Analyze the key risks and potential benefits associated with combo and synthetic stocks across varying market conditions.
  • Market application: Identify potential scenarios where these strategies could come into play in live market conditions
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Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from OCC and is being posted with its permission. The views expressed in this material are solely those of the author and/or OCC and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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