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synthetic short stock

A trading options strategy that is used to replicate a short stock position pay-off. It is carried out by buying a specific amount of "at the money" put (long put) and selling the same amount of "at the money" calls (short call) of the same underlying stock with the same expiration date. In synthetic short stock, the potential profit and the risk is unlimited.

Related information about synthetic short stock:
  1. Synthetic Short Stock Explained | Online Option Trading Guide
    What is Synthetic Short Stock? See detailed explanations and examples on how and when to use the Synthetic Short Stock options trading strategy.
     
  2. Options Strategy - Synthetic Short Stock
    Synthetic Short Stock. Options Strategy - Synthetic Short Stock. Description. If the strike price of the two options is the same, a Long Put/Short Call position is ...
     
  3. How to Create a Synthetic Short Stock Position »
    If synthetic stock is just a long call plus a short put what would synthetic short stock be? Once again, all we have to do is change the signs of our previous answer ...
     
  4. Short Combination | Synthetic Short Stock - The Options Playbook
    A short combination options strategy, also known as synthetic short stock involves selling a call and buying at put at a strike price equal or nearly equal to the ...
     
  5. Synthetic Short Stock
    If the strike prices of the two options are the same, this strategy is a synthetic short stock. If the calls have a higher strike, it is sometimes known as a collar.
     
  6. A Low-Risk Option Strategy: Synthetic Short Stock | Benzinga
    Feb 20, 2012 ... Rather than use only as speculative and high-risk market plays, strategies like the synthetic short stock position protect against downside loss ...
     
  7. Synthetic Positions by OptionTradingpedia.com
    Synthetic Short Stock = Short Call + Long Put 3. Synthetic Long Call ... A synthetic short stock completely duplicates those characteristics. The premium gained ...
     
  8. Synthetic Short Stock - TL - 13278
    Jun 2, 2012 ... A trader who implements a synthetic short stock strategy is betting that an asset's value will fall. The technique involves buying the same ...