Also known as: Synthetic Stock
Buy ATM call + sell ATM put. Replicates long stock with options.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Buy an at-the-money call and sell an at-the-money put at the same strike. The combined payoff is a straight line — identical to owning 100 shares, usually for near-zero net premium.
Stock-like exposure with less capital outlay than buying shares (margin applies). Also the building block for understanding put-call parity — every option position has a synthetic twin.
Identical to owning 100 shares: the short put means a falling stock is fully your problem. This is leverage, not a hedge.
Similar: Both replicate stock-like upside with options.
Different: Same strike = true synthetic; the combo (risk reversal) splits strikes, adding a no-profit zone between them.
New to options? Start with the free curriculum — or see which strategy fits your outlook.
Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.