I’d like to introduce a new term for an old tool: the extra-long position. It’s an option play that creates a synthetic long position. I’m sure the ideas behind this type of position is nothing new. Despite that, it doesn’t seem to be talked about very much on the popular finance sites or among financial gurus. Perhaps that’s because initiating an extra-long position would be dangerous to most amateur investors. Please proceed if 1) you are willing to increase risk and 2) are able to understand your profit and loss potential before trying this idea.
Why would you want to use an extra-long position?