Synthetic Short

bearish2 legs

Also known as: Synthetic Short Stock

Sell ATM call + buy ATM put. Replicates short stock with options.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

Sell an at-the-money call and buy an at-the-money put at the same strike. The payoff replicates shorting 100 shares — without locating borrow.

When to use it

Bearish stock-like exposure when shares are hard or expensive to borrow. Also used to flatten an existing long position synthetically.

What can go wrong

UNLIMITED, exactly like a short stock position — the naked call has no ceiling. Hard-to-borrow names often price this unfavorably for a reason.

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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.