: Often established for a net credit or zero cost, as the put premium sold typically covers the call premium bought.
: Sell an Out-of-The-Money (OTM) put and buy an OTM call. sell put and buy call strategy
The strategy of is known as a Synthetic Long Stock position when both options have the same strike price, or a Risk Reversal when they have different strike prices. This strategy mimics the risk and reward profile of owning the underlying stock but with significantly less capital. Core Papers and Resources : Often established for a net credit or
: You have unlimited upside but also face "uncapped" downside risk identical to owning the stock. Risk Reversal (Different Strikes) : sell put and buy call strategy