Strategy | Sell Put And Buy Call

: You have unlimited upside but also face "uncapped" downside risk identical to owning the stock. Risk Reversal (Different Strikes) :

: Replicate 100 shares of stock performance with minimal upfront cost. sell put and buy call strategy

: The Synthetic Long Stock Guide by HKEX provides a structured breakdown of the investment costs, maturity constraints, and margin requirements. : You have unlimited upside but also face

The strategy of is known as a Synthetic Long Stock position when both options have the same strike price, or a Risk Reversal when they have different strike prices. This strategy mimics the risk and reward profile of owning the underlying stock but with significantly less capital. Core Papers and Resources The strategy of is known as a Synthetic

: Often established for a net credit or zero cost, as the put premium sold typically covers the call premium bought.