Synthetic Short
Combine a short call and long put at the same strike to replicate short stock exposure.
Outlook : Strongly bearish
Profit : Substantial; limited to the underlying reaching zero
Loss : Unlimited
| Leg | Trade | Option | Lots | Strike |
|---|---|---|---|---|
| L1 | BUY | PUT | 1x | ATM |
| L2 | SELL | CALL | 1x | ATM |
ATM09:2015:15| Preset | Entry | Strikes |
|---|
| Preset | Exit | SL | TP | |
|---|---|---|---|---|
| Firebrick | 15:15 | 0 % | 0 % | |
| Firebrick | 15:15 | 20 % | 0 % | |
| Firebrick | 15:15 | 0 % | 20 % | |
| Firebrick | 15:15 | 20 % | 20 % | |
| Firebrick | After 14:30 15:15 | 20 % | 20 % |
Combine a short call and long put at the same strike to replicate short stock exposure.
Outlook : Strongly bearish
Profit : Substantial; limited to the underlying reaching zero
Loss : Unlimited