Buy Call Strategy - Sell Put And

: Sell an At-The-Money (ATM) put and buy an ATM call.

: Sell an Out-of-The-Money (OTM) put and buy an OTM call. sell put and buy call strategy

: Risk Reversal - Options Math for Traders details how this variation exploits "skew" (the price difference between puts and calls) to potentially enter trades for a net credit. Strategic Overview Synthetic Long Stock (Same Strike) : : Sell an At-The-Money (ATM) put and buy an ATM call

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 Strategic Overview Synthetic Long Stock (Same Strike) :

: Often established for a net credit or zero cost, as the put premium sold typically covers the call premium bought.

: You have unlimited upside but also face "uncapped" downside risk identical to owning the stock. Risk Reversal (Different Strikes) :

: Synthetic Long Stock and Option Trading: Evidence from Stock Splits examines how capital-constrained traders use this strategy to maintain market exposure.