> For the complete documentation index, see [llms.txt](https://guide.laevitas.ch/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.laevitas.ch/option-strategies/synthetic.md).

# Synthetic

## Long Synthetic

{% hint style="info" %}
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.
{% endhint %}

**Payoff Diagram:**

<figure><img src="https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FlrCmmUNckT0ZvMI7i8z1%2FLong%20Syn.png?alt=media&amp;token=8546fbf6-09d6-4230-9cea-1f0b4d2f346f" alt=""><figcaption></figcaption></figure>

**Direction Assumption:** Bullish

**Maximum Profit:** Unlimited

**Maximum Loss:** Unlimited

**Breakeven Price:** Price of Underlying during entry.

**Theta:** Passage of Time -> Neutral

**Volatility:** Neutral

## Short Synthetic

{% hint style="info" %}
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.
{% endhint %}

**Payoff Diagram:**

<figure><img src="https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FX2MXVJLIcdSeseze2SDH%2FShort%20Syn.png?alt=media&amp;token=de2f3078-6e7c-46da-ba30-847adbba08dd" alt=""><figcaption></figcaption></figure>

**Direction Assumption:** Bearish

**Maximum Profit:** Unlimited

**Maximum Loss:** Unlimited

**Breakeven Price:** Price of underlying during entry.

**Theta:** Passage of Time -> Neutral

**Volatility:** Neutral