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Synthetic Call

Trading Term

An order to simultaneously buy (or sell) a put option and buy (or sell) stock where both have the same underlying. For example:

  • Buy a synthetic call: Buy 1 XYZ April03 75 put, Buy 100 shares XYZ
  • Sell a synthetic call: Sell 1 XYZ April03 75 put, Sell 100 shares XYZ.

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