Commit 1c6637

2025-12-04 22:43:44 Viraj Alankar: -/-
finance/investing.md ..
@@ 64,7 64,7 @@
\text{Notional Value} = 80 \times 100 \times .50 \times -1 = -4000
```
- If I needed to sell $8000, I could by 2 of these. What if I wanted to spend less? I could create a synthetic short: sell a call, and buy a put (essentially funding it with the sold call), at strike price 80. For larger sums, I might use futures.
+ If I needed to sell $8000, I could by 2 of these. What if I wanted to spend less? I could create a synthetic short: sell a call, and buy a put (essentially funding it with the sold call), at strike price 80. For larger sums, I might use SPY or futures.
As another example, let's say I need to buy $4000 of large cap to rebalance. Instead of buying that stock, I can sell a put, which will have a positive notional value. Similar to above:
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9