Traditional Stock: simple & direct....but not always efficient
💡 Interested in optimizing your capital utilization with triple-digit multipliers?
Rodrigo Pinot
8/20/20251 min read
Chart of a Traditional Stock
➡ Stock goes up $1 → You gain $1
⬅ Stock goes down $1 → You lose $1
📈Do you trade stocks? This will interest you
With options, you can replicate the behavior of a stock using much less capital.
It’s called a synthetic stock: you buy an ATM call and sell an ATM put at the same strike price.
🔍 Real example with TLT (20+ year Treasury Bonds):
TLT shares trading at $88; Cost of 100 shares by direct purchase $8,800 while Synthetic: $34
Same exposure, 259 times more efficient!
*actual trade opened in my personal portfolio on Aug 5th
This strategy is ideal for those who already trade stocks.
It allows you to free up capital, manage risk, and trade with more flexibility.
Want to learn more? Message me and we’ll explore it together
*analysis focuses on Cash Out & ignores the buying power effect of a Portfolio Margin account~$500 (capital optimization when considering BP ~18x: $8,800/$500)
