Exchange Currency

synthetic long stock

An options strategy that is designed to replicate the pay-off of a long stock position. It is done by buying a specific amount of "at the money" calls (long call) and selling the same amount of "at the money" puts (short put) of the same underlying stock with the same expiration date. Note that the strike price of both options in a synthetic long stock must be the same. This strategy has an unlimited potential profit, while the risk is limited to the options premium.

Related information about synthetic long stock:
  1. Synthetic Long Stock Explained | Online Option Trading Guide
    What is Synthetic Long Stock? See detailed explanations and examples on how and when to use the Synthetic Long Stock options trading strategy.
     
  2. Synthetic Long Stock (Split Strikes) - The Options Guide
    What is Synthetic Long Stock (Split Strikes)? See detailed explanations and examples on how and when to use the Synthetic Long Stock (Split Strikes) options ...
     
  3. Options Strategy - Synthetic Long Stock
    Synthetic Long Stock. Options Strategy - Synthetic Long Stock. Description. If the strike price of the two options is the same, a Long Call/Short Put position is ...
     
  4. Long Combination | Synthetic Long Stock - The Options Playbook
    A long combination options strategy, also known as synthetic long stock, has similar risk/reward to long stock buys, but removes the up-front cost.
     
  5. Synthetic Long Stock - A Lower Level of Risk than Buying Shares ...
    Apr 18, 2012 ... But if you believe the stock is going to appreciate over the next month or two, an alternative is to open a synthetic long stock position. The May ...
     
  6. Synthetic Long Stock
    If the strike prices of the two options are the same, this strategy is a synthetic long stock. If the call has a higher strike, it is sometimes known as a collar. The term ...
     
  7. Synthetic Long Stock « OptionsHouse
    Feb 11, 2011 ... They evidently expressed this outlook by selling puts and simultaneously buying calls (otherwise known as a synthetic long stock strategy).
     
  8. Synthetic Positions by OptionTradingpedia.com
    You can create a synthetic long stock position simply by: ... Synthetic Long Stock: Peter bought 1 contract of Call Options and shorted 1 contract of Put Options ...