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Long Put 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 Put Synthetic Straddle involves buying puts and counteracting them
	with a Long Stock position. To create the Straddle shape, we have to buy twice the
	number of puts. So for every 100 shares we buy, we have to buy two put contracts,
	which represent 200 shares of the stock. The Long Stock position replicates the action
	of buying the same number of calls as puts. Because we’re buying stock to counter-
	act the long puts in this case, the Long Put Synthetic Straddle is an expensive strat-
	egy, requiring a large net debit.	

P/L Profile

    		
	



 
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