Stock and Option Synthetics

If you are serious about trading options you must know these relationships by heart.
If you have to stop to think about any of them you don't know them well enough.


Shorting Stock and Selling a Put is a Short Call
Buying Stock and Selling a Call is the same as Selling a Put
Buying a Put and Selling a Call is the same as Shorting Stock
Buying Stock and Buying a Put is the same as Buying a Call
Shorting Stock and Buying a Call is the same as Buying a Put
Buying a Call and Selling a Put is the same as Buying Stock
Long Stock Long Call Long Put
Short Stock Short Call * Short Put

Hover over any one to see its synthetic

* Naked Call = Live dangerously. Die young.