#SyntheticStock – He added this today. I like it. He went 30/30/25 for the LEAPs. I’m using 32/32/27. Same risk and same reward for much lower debit entry.

Synthetic stock in Jan 2019 for 1.03 credit:

Sold MGM JAN 18 2019 32.0 Puts @ 4.66
Bought MGM JAN 18 2019 32.0 Calls @ 3.63

Using the 1.03 to buy the disaster puts:

Bought MGM JAN 18 2019 27.0 Puts @ 2.42

In the 2019 position for 1.39 debit. Disaster put is 5 points under the synthetic so max risk in the entire trade is 6.39. Should easily sell 4 to 5 times that much in front month weeklies if MGM goes nowhere and the trade runs the full 65 weeks.

So:

Sold MGM NOV 3 2017 31.0 Calls @ .44