Synthetic covered call is a synthetic strategy that replicates the covered call position using a short put option. Its setup and risk profile is therefore identical to the short put strategy (single leg, bearish, limited risk and limited profit).
Related Strategies
- Covered call – the non-synthetic equivalent
- Short put – identical setup and risk profile
- Synthetic covered put – replicates covered put using short call options
- Synthetic covered strangle – replicates covered short strangle using two short put options with different strikes