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) :

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

: Replicate 100 shares of stock performance with minimal upfront cost. : Risk Reversal - Options Math for Traders

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

: Used by investors who are bullish but want a "margin of error" before the put obligation kicks in. Key Risks to Consider

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

: The Synthetic Long Stock Guide by HKEX provides a structured breakdown of the investment costs, maturity constraints, and margin requirements.