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Early 2024 I established a synthetic long position in PANW at the $300 strike price for just $6.

For risk management, on August 20th, I sold $400 calls for nearly $20 each. Today, I managed to buy back those calls for only $5.

As a result, I effectively hold $300 calls on PANW at a net credit of almost $14

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Ryan

I have actually no idea what he is talking about 😂

French_Dreamer

ChatGPT does a good job explaining this or check videos on YouTube. The risk is lowest when a stock reaches the very bottom of the range

DVYKYATMY

Over my head but slowly educating myself. Started with over 100 stocks, now reduced down to 30 and hoping to reduce even more. Still learning and trying to be more compact.

Fox_111

Yep…I can’t follow that 😵‍💫 wish there was a way to explain with pictures, screenshots and charts, and dumb it right down, step by step🙏🏽

SolStrat

Let’s go, TSLA! Here’s to an early Xmas present. Thought we’d see these movements next year only

Sam

Hi All, I will do my best to explain: James was Bullish on PANW, he entered Synthetic long at $300 which means, he bought a call @ $300 and sold a Put @$300 . with this two legs options, he paid premium of $6 per contract. Trade went well , so in August, he sold Covered calls on his position @ $400 collected $20 per contract. $20- $6 = $14 premium collected for the same synthetic long he entered early. in brief, instead of paying for his trade, he collected money, which is brilliant. Remember, Synthetics options have unlimited profit and loss risk and reward. Hope this help.

3324

Top man Nancy knows

Theresa

Amazing. Wish I'd held on to the stock.

Gerry

That is amazing!! I'm not sure why I struggle so hard with understanding options. I have pages of notes from countless hours of studying. I just keep trying to think it through until it makes sense.

George C

Is that a bull call spread ?

Joeyvick

Hi James, been watching you since 2021 and became a Patreon member when BTC crossed 100k just as a way to pay it back for all the knowledge you have given to me. Thank you for all you do. Wondering if you and the community can analyze Rumble for ITM calls. Thesis: Decentralization in video and an attack on YouTube’s “monopoly” on content combined with Chris Pavlovski adopting Saylor’s BTC reserve strategy. Taking the macro shift from woke to based, might be an interesting play. Thank you James and Thank you Patreon community. The education is a life changer