"How to Trade Synthetic Short Stock in Singapore ?"
If you want to profit when a stock falls — but don’t want to short shares or borrow stock — the Synthetic Short Stock is one of the cleanest and most capital-efficient options strategies.
It lets you mirror the performance of shorting 100 shares, using only around $1,000 instead of tens of thousands.
What Is a Synthetic Short Stock?
You combine:
1️⃣ Buy a Put Option 2️⃣ Sell a Call Option
Same strike. Same expiration.
This gives you nearly the same payoff as shorting the stock — but with far less capital and no need to borrow shares.
Why Traders Use It
✔ Perfect for bearish trades ✔ No need for margin borrowing ✔ Avoid hard-to-borrow fees ✔ Much cheaper than shorting shares ✔ Risk predictable when sized properly (~$1,000)
This is the simplest professional way to take a bearish position using options.
Real ~$1,000 Example (TSLA)
Tesla at USD 250.
StepTradeDetails1Buy PutTSLA 250 Put (30–45D) @ $82Sell CallTSLA 250 Call (30–45D) @ $8
Net cost ≈ $0 or a very small credit. Buying power used: ~$1,000 depending on broker.
You now have a position that moves almost exactly like shorting 100 shares — without borrowing stock.
How You Profit
1️⃣ TSLA falls
Your long put gains significantly. ✔ You profit almost exactly like shorting shares.
2️⃣ TSLA stays flat
The value of both options stays close. ✔ Minimal impact.
3️⃣ TSLA rises
Your short call increases in value. Your long put loses. ✔ Manage by rolling the short call ✔ Since you use ~$1,000 size, risk stays contained
This is why high-income traders love this structure — huge movement for tiny capital.
Why Singapore Professionals Use It
✔ Powerful bearish exposure ✔ Avoids the risks of traditional shorting ✔ Uses options efficiently ✔ Capital-efficient (~$1,000) ✔ A key technique in the Best Options Trading Course in Singapore for Millionaires
When you want to express a bearish view safely, the Synthetic Short Stock is one of the cleanest tools available.
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