SYNTHETIC LONG CALL | bull strategy

Example: Buy futures; buy put
Market Outlook: Carefully bullish
Risk: Limited
Reward: Unlimited
Increase in Volatility: Helps position
Time Erosion: Hurts position
Break-Even Point (BEP): Starting futures price plus premium paid

A synthetic long call is created when long stock position is combined with a long put of the same series. It is so named because the established position has the same profit potential as a long call.

Married put and protective put strategies are examples of synthetic long calls.

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