Synthetic covered put is a synthetic strategy which replicates the covered put position using a short call option. Its setup and risk profile is therefore identical to the short call strategy (single leg, bullish, unlimited risk and limited profit).
- Covered put – the non-synthetic equivalent
- Short call – identical setup and risk profile
- Synthetic covered call – replicates covered call using a short put option
- Synthetic covered strangle – replicates covered short strangle using two short put options with different strikes