Synthetic Long
In plain English
Mimic owning a future using two options. You buy a call and sell a put at the same strike, which behaves almost exactly like a long futures position — sometimes cheaper. Just remember the downside is futures-like, NOT capped.
How it's built
Buy an ATM call + sell an ATM put — replicates a long future using options.
Illustrative payoff at expiry on a NIFTY-like underlying (spot 24,000, 7d, 13% IV). The shape is the point — open it in the Strategy Lab to tune spot, time and volatility live.
Max profitUnlimited
Max lossUnlimited
Net premiumDr ₹1,943
Breakevens24,030
When to use it
Bullish, wanting futures-like delta≈1 exposure, sometimes cheaper than the future itself.
Max profit
Unlimited (like a long future).
Max loss
Substantial (like a long future) down to zero.
Common mistakes
- Treating it as risk-defined — it is not; the downside is futures-like.