Buy Call Option Sell Put - Option

: Calculated as the Strike Price + Net Debit paid (or minus net credit received).

: Theoretically unlimited, as there is no cap on how high a stock's price can rise. buy call option sell put option

This combination replicates the risk and reward profile of owning the underlying stock outright but typically requires significantly less upfront capital. Key Features of a Synthetic Long : Calculated as the Strike Price + Net

The strategy of simultaneously and selling a put option at the same strike price and expiration date is known as a Synthetic Long Stock position. buy call option sell put option