> 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

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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.
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**Payoff Diagram:**

<figure><img src="/files/xxdvCb7czmAKY42rgjYb" 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="/files/VV1ZvmocZu2Z83GK35If" 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