Long Synthetic

Psychology:

The long synthetic strategy involves buying a single call option contract and selling a single put option contract at the same exercise price. The best time for an investor to use a long synthetic strategy is when they are bullish toward the underlying asset’s share price. In other words, it is good idea to use a long synthetic when the desire is to obtain the same profit characteristic as holding onto the stock itslef. The long synthetic is less expensive than purchasing the asset directly.

Risk / Reward:

Maximum Loss: Unlimited.

Maximum Gain: Unlimited.