And Buy Call Strategy - Sell Put

: Synthetic Long Stock and Option Trading: Evidence from Stock Splits examines how capital-constrained traders use this strategy to maintain market exposure.

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 sell put and buy call strategy

: Used by investors who are bullish but want a "margin of error" before the put obligation kicks in. Key Risks to Consider : Synthetic Long Stock and Option Trading: Evidence

: Often established for a net credit or zero cost, as the put premium sold typically covers the call premium bought. Core Papers and Resources : Used by investors

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