Synthetic Stock Strategy Details

Our third session on our synthetic stock strategy dug into the details of how we are using this strategy as a means to invest rather than simply trade.  We covered how to select a ticker (and why we are using only SPY), selecting an expiration month, and selecting a strike price.

We also talked about how and when to roll synthetics out in time and up in price, as well as the methods that we use for placing protective trades to ride through (and profit from) short term down trends.  Lastly, we talked about how we will allow our protective positions to become our primary investment vehicle during bear markets and how our bullish positions turn into the new protective trade while a bear market is in place.

The slides used during this session are available here.