: Replicate 100 shares of stock performance with minimal upfront cost.
: 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
: Sell an At-The-Money (ATM) put and buy an ATM call. : Replicate 100 shares of stock performance with
: Synthetic Long Stock and Option Trading: Evidence from Stock Splits examines how capital-constrained traders use this strategy to maintain market exposure. sell put and buy call strategy