The Traderszone Network

Published in TZ Latest News 26 October, 2017 by The TZ Newswire Staff

Duplicating a non Existent Strike Price

I own some $16 puts which have gone ITM and I would like to roll them down but the exchange(s) haven’t added 1/2 point strikes yet. Yes, I know that I can request that they add them and more often than not, they have complied. More than likely, they will add them tomorrow, on their own. But if not, with the stock at $14.50, can a combination of $15 and $14 puts be used to reasonably replicate the $14.50 puts which don’t exist?

Here’s where I go off the reservation (g). Buying one $15…

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