I am think of ITM synthetic future on NFLX, 70 long call and 70 short put expires Jan 27. Cost 2100 and sell month call delta around 30 which could generates about 200 each month. I am asking with such set up is my theta positive. Time decay is on my side.
NFLX synthetic future + monthly short call
byu/eeel12388 inoptions
Posted by eeel12388
4 Comments
They have earnings Tues, just keep that in mind as current prices are not time decay but inflated by 8% of implied volatility awaiting results.
Thank you. I will do it after earnings if someone can confirm my set up is time decay positive.
NFLX is gonna go up significantly in the next 6-12 months unless there is a massive recession
Put/call parity dictates that theta for synthetic long stock (long call/short put with same strike) will be net flat theta. The short OOM call will have positive theta. So yes, the setup is net positive theta