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.

A covered call is an options strategy with undefined risk and limited profit potential that combines a long stock position with a short call option. Covered calls are used to generate income if an investor is moderately bullish and plans to hold shares of stock in an asset for an extended length of time.

A short put is a single-leg, bullish options strategy with undefined risk and limited profit potential. A short put is sold when the seller believes the price of the underlying asset will be above the strike price on or before the expiration date.

A long call is a bullish options strategy where the expectation is a rise in price prior to expiration. Buying a call option is a levered, risk-defined alternative to buying shares of stock.

A long call is a bullish options strategy. Buying a call option is a levered, risk-defined, cost-effective alternative to buying shares of stock.