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.
Position construction
Long 100 Underlying, Buy 1 ATM Put
Unlimited Profit Potential
Maximum profit
Unlimited
Profit achieved when: Price of Underlying > Purchase Price of Underlying + Premium Paid
Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Limited Risk
Maximum loss
Premium Paid + Commissions Paid
Loss occurs when: Price of Underlying <= Strike Price of Long Put
Breakeven point
Breakeven
Purchase Price of Underlying + Premium Paid