Gain exposure to the price movements of a particular stock without actually owning the stock Descriptions Synthetic long stock is a financial instrument that allows an investor to gain exposure to the price movements of a particular stock without actually owning the stock. This can be achieved through the use of derivatives such as options […]

A synthetic call is a financial derivative that combines a put option and a call option to replicate the payout of a traditional call option. Description The put option has a strike price that is below the current market price of the underlying asset, while the call option has a strike price that is above […]

Similar to a straddle, but with a stronger bullish bias achieved by purchasing twice as many calls. The stock must move in order to generate money, but it will now profit more from an upward movement than from a downward one. Description Involves buying two call options and selling one put option on the same […]

Slightly bullish, you want the stock to rise to Leg 2 and then stop. Alias Front Spreads with Calls, Ratio Vertical Spread Description This strategy is used when the trader expects the underlying security to experience a limited price movement and wants to profit from the difference in the premiums received for the short call […]

A very bullish approach results in large profits when the stock makes a significant upward move and losses when it moves just a little. Even if you’re set up for a net credit and the stock declines, you could still make a modest profit. Description Involves selling a number of call options at a lower […]