Disclaimer: While synthetic long stock strategies are often discussed in relation to Warren Buffett, it's essential to note that there's no direct evidence suggesting he has explicitly endorsed this strategy.

Continued part 2.

* Amplified returns: If the stock price rises, the long call option appreciates significantly, potentially generating higher returns than a direct stock purchase.

* Risk Management:

* Limited downside: The short put option generates income, which can offset potential losses from the long call.

* Defined risk: The maximum loss is typically the net premium paid for both options.

* Flexibility:

* Delayed decision: Investors can wait for a better entry point without missing out on potential upside.

* Tailored risk profile: By adjusting the strike prices and expiration dates of the options, investors can customize the strategy to suit their risk tolerance.