Synthetic long stock combines a long call and a short put at the same strike to replicate the payoff of owning 100 shares — moving dollar-for-dollar with the stock, but tying up far less capital.
Open the Synthetic Long Stock calculator →Use it when you want stock-like exposure but prefer the leverage and capital efficiency of options, or to set up other strategies (a covered call against a synthetic, for example).
Because it carries the same downside as the shares, treat the position size as if you owned the stock — the capital saving is not a free lunch.
Above the strike the long call gains like stock; below the strike the short put loses like stock. The two combine into a straight line with slope 1 — identical to holding shares, offset by the small net debit or credit.
Maximum profit is open-ended on the upside; the loss grows as the stock falls, down to (strike − net credit) × 100 at a zero stock price, and you may be assigned the shares.
Use the free OptionProfit Synthetic Long Stock calculator to load a live option chain, build the trade, and instantly see the payoff chart, breakevens, probability of profit, Greeks and a Monte Carlo simulation of outcomes.
Capital efficiency and leverage — you get the same dollar-for-dollar exposure while tying up far less cash, which frees capital for other positions.
The same downside as owning the stock: large losses if it falls, plus assignment on the short put. It is not lower risk, just lower capital.
No — you do not own the shares, so you receive no dividends; the cost of carry and dividends are reflected in the call and put prices.
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