A Long Synthetic is a bullish directional strategy which is a combination of a Long Call and a Short Put with the same strike price and expiration.
Payoff Diagram:
Direction Assumption: Bullish
Maximum Profit: Unlimited
Maximum Loss: Unlimited
Breakeven Price: Price of Underlying during entry.
Theta: Passage of Time -> Neutral
Volatility: Neutral
A Short Synthetic is a bearish directional strategy which is a combination of a Long Put and a Short Call with the same strike price and expiration.
Direction Assumption: Bearish
Breakeven Price: Price of underlying during entry.
Last updated 3 years ago
