Long Synthetic Components Buy one call option and sell one put option at the same strike price.
A long synthetic is a bullish strategy and involves buying a call and selling a put. It has unlimited profit as the stock price climbs, and unlimited loss as the stock price falls.
A long box-spread can be viewed as a long synthetic stock at a price K1 plus a short synthetic stock at a higher price K2.
See also: Option, Call, Long, Put, Future
 
|