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Chapter 7. Synthetic Strategies > Short Synthetic Future

7.9. Short Synthetic Future

ProficiencyDirectionVolatilityAsset LegsMax RiskMax RewardStrategy Type
N/A+
ExpertBearish • Long PutUncappedUncappedCapital Gain
   • Short Call   


7.9.1. Description

The precise opposite of a Long Synthetic Future, we can synthetically create the risk profile or a short stock position by buying ATM puts and selling ATM calls. The net result is a virtually nil cost or even net credit trade that precisely mimics the short stock or short future position.


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