If you want the upside of buying 100 shares without paying full price, the Synthetic Long Stock is one of the most efficient options strategies available.
This strategy lets you mimic stock ownership using two options — at a small fraction of the cost.
Perfect for high-income traders who want leverage with controlled risk.
What Is a Synthetic Long Stock?
You combine:
1️⃣ Buy a Call Option
2️⃣ Sell a Put Option
Same strike. Same expiration.
This creates a position that behaves almost exactly like owning the stock — but costs far less.
Why Traders Use It
✔ Much cheaper than buying 100 shares
✔ Gives you full upside exposure
✔ Uses ~$1,000 instead of tens of thousands
✔ Clean, simple structure
✔ Defined risk if you size properly
This is the “professional” way to go long on a strong stock without tying up your capital.
Real ~$1,000 Example (AAPL)
Step Trade Details
1 Buy Call AAPL 190 Call (30–45D) @ $5
2 Sell Put AAPL 190 Put (30–45D) @ $5
Net cost ≈ $0 or a small credit.
Buying power used: ~$1,000 depending on broker.
You now have a position that moves almost exactly like 100 shares of Apple — but without paying USD 19,000.
How You Profit
1️⃣ AAPL goes up
Both the long call and short put gain.
✔ You profit almost like owning the stock.
2️⃣ AAPL stays flat
Time decay affects both sides, but the structure remains stable.
✔ Small cost. Small movement. No surprises.
3️⃣ AAPL drops
Your short put may be assigned if the stock falls below the strike.
✔ You can manage or roll it
✔ Risk is controlled by using small sizing (~$1,000)
This is why high-income traders love Synthetic Long Stock — huge exposure, tiny capital.
Why Singapore Professionals Use This Strategy
✔ Creates stock-like movement cheaply
✔ Works well for strong trending stocks
✔ Extremely capital-efficient
✔ Fits perfectly into a $1,000-per-trade plan
✔ A core technique in the Best Options Trading Course in Singapore for Millionaires
When you want strong upside exposure without heavy capital, this is one of the smartest options strategies.
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