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.
Hold 100 shares; Buy 1 put.
Unlimited Profit Potential
Unlimited as the stock price rises.
The diagram and calculator use this example: Buy 100 shares at $52; Buy 1 $50 put option at $2 per share. All options share one expiration and a 100-unit multiplier. Fees are zero in this example.
Limited Risk
Stock purchase price plus the put premium paid, minus the put strike price.
Explore multi-leg option research . This broad screener covers related trades and may not include the exact construction in this guide.
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Breakeven Point(s)
Stock purchase price plus the put premium paid, provided that price is at or above the put strike.
Before expiration and assignment
The diagrams and worked outcomes describe expiration payoffs, not an option’s market price before expiration. Time decay, implied volatility, rates, dividends and bid-ask spreads affect early closing values. American-style short options can be assigned early; a protective long option is not automatically exercised when a short leg is assigned. Closing or exercising one leg can change the remaining position’s risk.
Amounts are per share before fees. Multiply by the shares covered by the position; standard equity options usually cover 100 shares per contract. If a maximum profit or loss calculation gives a negative amount, use zero. These figures assume matching contracts held to expiration and do not include financing or early assignment.
