Sell Put And Buy Call Strategy Apr 2026

: Sell an At-The-Money (ATM) put and buy an ATM call.

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

: Synthetic Long Stock and Option Trading: Evidence from Stock Splits examines how capital-constrained traders use this strategy to maintain market exposure. : Sell an At-The-Money (ATM) put and buy an ATM call

: The Synthetic Long Stock Guide by HKEX provides a structured breakdown of the investment costs, maturity constraints, and margin requirements. : The Synthetic Long Stock Guide by HKEX

: Replicate 100 shares of stock performance with minimal upfront cost.

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