Option : Synthetic Position
"the Alpha Option Strategy"
The synthetic option strategy of Ladder Finance can be explained that combines multiple derivatives to form a portfolio. This strategy is useful when the stock market is highly volatile.
The synthetic options strategy typically begins by buying call options and put options at the same time. And then, they create new derivatives through combining them. For example, the strategy orders to buy call option, after that, put options are bought by the premium of call options. This new derivative is a kind of synthetic option that can generate very effective returns in certain scenarios. However, they are still exposed to the risk of volatility.
This strategy is especially effective when the market volatile is high. If two types of strategies described earlier were pursuing low returns, the synthetic option strategy would be different. In other words, the strategy figures out the real-time market trend and managed immediately by algorithms and professional option strategists. Therefore, it is not possible to specify only few strategies. This is sensitive and highly volatile for returns and losses. Consequently, our team is developing strategies to minimize risk and protect investors’ assets with professional analysis and monitoring.
※ Unlike other strategies, the synthetic option strategy is designed to be unaffected by governance.
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