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Chapter 7. Synthetic Strategies > Long Call Synthetic Straddle

7.4. Long Call Synthetic Straddle

ProficiencyDirectionVolatilityAsset LegsMax RiskMax RewardStrategy Type
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    +   
ExpertNeutralHigh• Short StockCappedUncappedCapital Gain
   • Two Long Calls   


7.4.1. Description

Straddles can be created “synthetically”—in other words, instead of buying calls and puts together, we create the same risk profile by combining calls or puts with a long or short position in the stock.


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