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Disclaimer: The information provided in this trade alert is for educational and entertainment purposes only and should not be considered as financial advice. The author is not a financial advisor and is only sharing their personal trading activities in full transparency. The opinions expressed in this alert are the author's own and do not reflect the views of any other individual or organization. Investing in cryptocurrencies and other financial instruments involves a high degree of risk, and you should not invest money that you cannot afford to lose. Always do your own research and consult with a licensed financial advisor before making any investment decisions. The author is not responsible for any losses or damages resulting from the use of the information provided in this alert. 

CEP Synthetic Long Trade Update

I'm doing some pretty cool trading today. Earlier, I entered a synthetic long position on CEP with a $40 strike price expiring January 20, 2026. I structured it by selling the $40 puts and buying the $40 calls—a classic synthetic long setup. Here's where it gets interesting: the market makers actually paid me $4 to put on this trade, which effectively reduces my break-even price to $36.

For context, I previously made substantial gains on CEP, riding it all the way up and exiting at $33. I rotated those profits into $ASST, which I’m still holding.

But I saw an opportunity to re-enter CEP and couldn’t resist. Then I took it a step further a few hours later—I sold the $55 calls expiring this June for $4.10, which means I collected an additional $4.10 premium. That brings my total credit to $8.10, lowering my break-even to just $32.

So now I’m back on the CEP train with a break-even well below my previous exit. And for that short $55 call, the effective break-even from the call buyer's perspective is $59 by June. If CEP goes above $59 I will roll up or buy back.