Involves selling a put option and a call option with the same strike price and expiration date, and buying the underlying asset. This creates a synthetic position that is similar to a traditional short straddle, but uses put options instead of call options. Description is to profit from a decrease in volatility or a narrow […]

Involves selling a call option and a put option with the same strike price and expiration date, and buying the underlying asset. This strategy is similar to a traditional short straddle, but it uses call options instead of put options to create the synthetic position. Description The goal of this strategy is to profit from […]

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

Involves buying a put option and a call option with the same strike price and expiration date, and selling the underlying asset. This strategy is similar to a traditional long straddle, but it uses put options instead of call options to create the synthetic position. Description The goal of this strategy is to profit from […]

Simultaneously buying a call option and a put option on the same underlying asset with the same expiration date and strike price. Alias This position is also known as a straddle. Description A synthetic long straddle with calls is a neutral strategy, as the investor profits if the underlying asset moves significantly in either direction, […]