I’ve been looking into more advanced strategies lately. Synthetic long calls caught my eye, but I’m not sure about the risks involved.
Has anyone here actually tried this strategy? Curious to hear about your experiences and if it’s worth exploring further.
I lost 40% on a trade in TSLA trying synthetic longs.
I now prefer straightforward call options.
A simple SPY call returned 25% profit with less stress.
Keep entry small and set exits.
Synthetic longs look great in theory but can bite hard in practice. I’ve seen traders blow accounts chasing those fancy payoffs. Stick to basics: straight calls or puts. They’re easier to manage and exit if things go south. If you insist on trying synthetics, paper trade for at least a month first. Watch how they behave in different market conditions. And never risk more than 1% of your account on these complex trades. Remember, consistent small wins beat occasional big scores every time.
Tried synthetic longs briefly, netted 18% profit in 2 days, tight spreads matter.
Synthetic long calls can be tricky. Tried them a few times last year, but found the risk management challenging.
The strategy looks good on paper, but in practice, it’s easy to get caught out by sudden price swings. Might be worth paper trading first to get a feel for it.
What’s your risk tolerance like? That’s a big factor to consider before diving in.
Synthetic long calls:
• Combine long stock + short put
• Mimic long call payoff
• Lower upfront cost vs. buying calls
• Higher margin requirements
• Complex risk profile
Backtest extensively before live trading.