Key characteristics of the strategy
Long Call + Short Put = Synthetic Long ForwardAn option payoff diagram shows what a position is worth at expiry for every possible price of the underlying. This strategy builder lets you combine calls, puts, stock, forwards and cash, then plots the payoff and the profit after premiums. Start from presets such as covered calls, protective puts, bull and bear spreads, straddles, strangles and butterflies, or build your own multi-leg strategy.
Payoff is the value of the position at expiry. Profit subtracts what you paid to open it (option premiums) and adds what you received for options you sold, so the profit line is the payoff line shifted by the net premium.
Put–call parity: a long call plus a short put with the same strike behaves exactly like a forward. Combinations with identical payoffs must cost the same today, otherwise there would be an arbitrage.