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Chapter 7. Synthetic Strategies > Long Synthetic Future

7.8. Long Synthetic Future

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


7.8.1. Description

We can synthetically create the risk profile or a long stock by selling ATM puts and buying ATM calls. The net result is a very inexpensive, nil cost, or even net credit trade that precisely mimics the long stock or long future position.


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