Synthetic long stock and short stock
A long call plus a short put at the same strike and expiration produces the terminal payoff of a long forward. Reverse the legs for synthetic short stock. Compare both directions below, including premiums, financing, dividends and contract size.
The option pair provides price exposure for a fixed term. It does not pay shareholder dividends, convey voting rights or remove collateral requirements.
Synthetic long and short stock calculator
Use the same underlying, strike, expiration and deliverable for both legs. These independent manual inputs start with a hypothetical example; they do not import the chain below. Premiums are per share, fees are for the whole position.
The model uses one known dividend, paid on the entered day, and one rate for borrowing and reinvesting cash. Set dividend to zero for a stock without a payment during the term. Only cash deliverables proportional to shares are modeled; adjusted contracts with other deliverables need separate analysis.
Equivalent share exposure
+100 long / -100 short
Parity C - P per share
$1.48
Entered C - P minus parity
$0.52
| Cash flow / result | Long call + short put | Short call + long put |
|---|---|---|
| Initial cash (+ received, - paid) | -$200.00 | $200.00 |
| Option P&L before financing, after fees | $800.00 | -$800.00 |
| Option P&L after financing and fees | $794.94 | -$794.94 |
| Financed breakeven per share | $102.05 | $102.05 |
| Share price change + cash dividend (no fees/carry) | $1,100.00 | -$1,100.00 |
| Fully financed shares (no fees/borrow charge) | $848.11 | -$848.11 |
Present value of the strike reserve: $9,753.10. This is a theoretical funding amount, not your broker's margin requirement. Dividend present value: $0.99 per share. A parity residual can reflect incompatible quotes, exercise style or market costs; it does not prove an executable arbitrage.
A small entry debit is not free leverage. Short options need collateral and can be assigned early. This European terminal-payoff model excludes margin interest differences, stock borrow fees, taxes, slippage, early assignment and exit fees. Short-stock proceeds may not earn the entered rate. Educational analysis, not investment advice.
Inspect options from a chain snapshot
This separate builder uses day-close premiums from up to 250 loaded contracts, 7 to 90 days out. Coverage may be incomplete; prices are not executable quotes. Verify timestamps and bid/ask with your broker. All legs use one expiration; premiums can be edited. Builder results exclude carry, dividends and fees. Only standard 100-share contracts are auto-selected.
Underlying Asset
Enter a stock or ETF ticker to load its options chain.
Strategy Analysis
Build a strategy to see risk metrics and analysis.
Payoff Diagram
Configure your strategy to see the payoff curve.
The strike is a future cash obligation
For one matched call and put, let K be the strike and Sₜ the stock price at expiration. Before premiums, the long pair pays max(Sₜ - K, 0) - max(K - Sₜ, 0) = Sₜ - K. The short pair pays K - Sₜ. Multiply by the shares per contract and the number of contracts. Equal quantities alone are insufficient if the deliverables differ.
The Options Industry Council describes synthetic long stock as a long call and short put; synthetic short stock reverses those positions. The long side can lose the strike amount plus its net debit if the stock falls to zero. The short side has unlimited upside-price risk.
Put-call parity with a dated dividend
For European options, one known cash dividend D paid after t years, a shared expiration after T years, and a continuous annual rate r, the model is:
PV(D) = D × exp(-r × t)
C - P = S₀ - PV(D) - K × exp(-r × T)
Long financed P&L = [Sₜ - K - (C - P) × exp(r × T)] × N - fees × exp(r × T)
N is contracts times multiplier; days use a 365-day year. The short payoff negates the expression in brackets and also deducts fees. Dividend present value changes the theoretical C - P; it is not cash received by an option holder. The OIC parity reference explains the financing and dividend relationship. The calculator extends its discounted-strike formula with a dated dividend cash flow.
For a financed share purchase, terminal P&L is [Sₜ - S₀ × exp(rT) + D × exp(r(T - t))] × N. At parity and before fees, that equals the financed long option result. A cash-funded share purchase has a different cash ledger: price change plus the dividend received, without an explicit loan. Actual short shares can also require a borrow fee and dividend compensation.
Reproduce the $100-strike example
The initial calculator example uses S₀ = K = $100, call = $6, put = $4, 182.5 days, a 5% continuous rate, one $1 dividend paid after 91.25 days, one contract per leg and a 100-share multiplier. Entry fees are zero. The dividend present value is $0.9876; the theoretical call-minus-put premium is $1.4814 per share.
At a $110 expiration price, the long call pays $1,000 and the short put pays $0. Deducting the $200 entry debit gives $800. Financing that debit gives $794.94. Reversing the options gives -$800 before financing and -$794.94 after financing. The financed long breakeven is $102.0506.
A cash purchase of 100 shares has $1,000 of price gain and $100 of dividends. Financing the entire purchase at the model rate, with the dividend applied on its payment day, leaves $848.11. The $53.17 gap versus the entered option pair is the $0.5186-per-share parity residual compounded to expiration. These premiums are hypothetical, not a market opportunity. Change the multiplier to 10 to divide position amounts by ten while preserving per-share breakevens.
Where the replication breaks
- Different strikes create a different payoff between the strikes. Different expirations expose one leg after the other expires. Match underlying, strike, expiry, exercise style and deliverable before comparing.
- American options can be assigned before expiration. A short call can create short shares; a short put can require payment for shares. The terminal model does not simulate these interim cash flows.
- Near the strike, exercise decisions and after-hours price moves can leave an unexpected share position. Confirm your broker's exercise cutoff and assignment process.
- Broker margin, borrowing rates and collateral interest vary. A zero net premium does not make the position costless, and dividends are not directly paid to the synthetic holder.
Build the pair in TradingView, then record the assumptions
In TradingView Options strategy builder, select the underlying and expiration, add a buy call and sell put on the same strike row, and set equal quantities. Reverse buy and sell for the short version. Check each contract's specifications and entered premiums before interpreting the payoff chart.
Use Pineify's AI Stocks & Options Picker to inspect available chain inputs. In the Trading Journal, record each leg, premium source and timestamp, multiplier, financing rate, dividend date and assignment plan in your notes. This calculator does not send trades or synchronize a position to either product.
A scenario payoff is not a historical backtest or a tradable quote. Reconcile the final cash flows against fills and broker statements. Sources reviewed October 18, 2026.
More Free Options Tools
Options Chain
Inspect available option contracts and compare expiry, strike and premiums.
Options Breakeven Calculator
Calculate breakeven points and visualize P&L curves for single-leg options positions.
Options Greeks Scenario Visualizer
Explore how model inputs affect option risk sensitivities.
TradingView Strategies
Review strategy mechanics, assumptions and testing workflows.
Synthetic stock questions
Does synthetic long stock pay dividends?
The option pair does not receive shareholder dividends. Expected dividends affect call and put premiums. If exercise or assignment creates a share position, its subsequent cash flows depend on the relevant dates and settlement rules.
Is a zero-cost synthetic position free leverage?
No. A zero net option premium leaves the short-leg obligation, broker margin and possible financing costs. A long synthetic can lose approximately the strike value times its share exposure if the stock goes to zero. The short version has unlimited loss as the stock rises.
Why do synthetic and actual share P&L differ?
Premiums, financing, dividends and fees must use the same timing and units. The calculator shows both cash-share returns and a fully financed share comparison. Its single-rate European model excludes early assignment, stock borrow charges and differences between borrowing and collateral interest rates.
Can I use different strikes or expiration dates?
Different strikes or expirations do not produce this matched synthetic stock position. The manual calculator uses a common strike and term by construction. The chain presets require a matched call and put; manually edited legs can represent another option strategy.
Are the chain premiums live executable quotes?
No. Auto-fill uses day-close prices from the loaded snapshot. The request returns at most 250 contracts within a 7 to 90 day expiration window, so some pairs may be absent. Check bid/ask, timestamps, exercise style and deliverables with your broker, then enter your own assumptions.
Check the contracts behind the payoff
Inspect available option chains in AI Stocks & Options Picker. Keep the intended cash flows and actual fills in your Trading Journal notes so you can compare the scenario with the result.