Synthetic Long

Synthetic Positions Intermediate NIFTY BANKNIFTY FINNIFTY RELIANCE TCS HDFC Bank All liquid options

Bullish - equivalent to owning stock

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Quick Reference

Strategy Type	Stock Equivalent - Put-Call Parity Position
Market Outlook	Bullish - equivalent to owning stock
Risk Profile	Unlimited downside (short put obligation)
Reward Profile	Unlimited upside (long call)
Time Horizon	Any - commonly monthly for position trades
Capital Requirement	Lower than stock/futures (approximately Rs.50,000-80,000 per lot)
Best Used When	Want stock-like exposure with capital efficiency, options more liquid than underlying, positive put skew environment

Want stock-like exposure with capital efficiency, options more liquid than underlying, positive put skew environment

Note	Each synthetic long replicates one lot of underlying exposure

Call Purchase	0.05% on premium
Put Sale	0.05% on premium (if ITM at expiry, 0.125% on settlement value)
Important	Short put ITM at expiry attracts higher STT - consider closing before expiry

Short Put Margin	SPAN + Exposure margin required
Long Call	Premium paid only (no margin)
Overall	Total margin significantly less than buying underlying
Margin Benefit Example	Stock worth ₹7 lakhs may require only ₹1.5-2 lakhs margin for synthetic

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