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All-StarsBullish
Synthetic Long Stock
Overview
Creates a position that behaves identically to owning 100 shares of stock using options only. Buying a call and selling a put at the same strike mirrors the risk/reward of stock ownership with less capital.
Max Profit
Unlimited
Max Loss
Substantial (to strike price × 100)
Breakeven
Strike Price + Net premium paid/received
Structure
Long 1 ATM Call + Short 1 ATM Put (same strike, same expiry)
Risk Profile
Unlimited profit potential. Substantial risk. Identical P&L profile to owning 100 shares.
When to Use
When you want stock-like exposure using options. When you want to use less capital than buying shares. When you want the same risk profile as stock ownership.