ICE position comparison

This post will demonstrate how a synthetic collar can be substituted with a simple diagonal spread, with less transaction costs. I saw this collar talked about in Woodiescciclub.com
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Synthetic collar.
+Mar 110c
- Mar 110p
+Mar 105p
- Jan 115c
The 110c and 110p form synthetic long stock.
The synthetic long stock and the 105p form synthetic long call(with deductible). So essentially the position was deduced roughly down to:
+ March call
- Jan call

A long diagonal spread.


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Here is the equivalent long diagonal spread:
+Mar 105c
- Jan 115c
debit 10.25
Only 2 legs to worry about, comparable greek risks, less commissions, less bid/ask spread to overcome, better breakeven point.

Debit is kinda high you said?

Compare its cousin using puts in the next position.




The ONLY difference in this position here compared to its "call" cousin above, its using puts, but essentially the same thing. Calls are puts, and puts are calls.

+ Mar 105p
- Jan 115p
credit .50





Which one of the three positions would you choose? ;-)