Synthetic Long Stock
To create a long synthetic stock position, you simply buy an ATM call option and sell an ATM put option at the same strike price. This creates a bullish position with much less capital than owning stock.
Kirk Du Plessis
Apr 19, 2021
Since we know that owning and holding long stock is capital intensive, today we'll show you how you can use options as a way to go synthetically long a stock with a fraction of the capital requirement. This can be a huge advantage (if used wisely) when trading covered calls or when using stock to hedge a current options position.
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