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Long Call Synthetic Straddle

Description	
	Straddles can be created synthetically in other words, instead of buying calls and
	puts together, we create the same risk profile by combining calls or puts with a long
	or short position in the stock.
	   The Long Call Synthetic Straddle involves buying calls and counteracting them
	with a short stock position. To create the straddle shape, we must buy twice the num-
	ber of calls. So for every 100 shares we short, we must buy two call contracts, which
	represent 200 shares of the stock. You may notice that the Long Call Synthetic Straddle
	is similar to the Synthetic Call, except that here we buy twice the number of calls.	

P/L Profile

    
	



 
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