The effects of implied volatility are somewhat muted in a synthetic long, since you're simultaneously long and short two options at the same strike. However, if the call moves into the money ...

To build a synthetic short spread ... Since you're short a call option, the maximum risk on this trade is theoretically unlimited -- making a rally above the call strike your worst-case scenario.

Covered-call ETFs are increasingly popular among dividend investors seeking alternatives in low-rate environments. Explore ...

YieldMax™ R2000 0DTE Covered Call Strategy ETF (Nasdaq: RDTY) RDTY Overview RDTY follows an active management approach that utilizes a synthetic covered call strategy designed to generate weeklyincome ...