Synthetic Put Calculator

A synthetic put combines short stock with a long call to replicate a bearish, put-like payoff (often used when puts are costly or illiquid).

Short Stock Position

Stock Symbol

Current Stock Price ($)

Short Sale Price ($)

Number of Contracts (100 shares each)

Long Call (Protection)

Call Strike Price ($)

Call Premium per Share ($)

Trade Summary

Enter option details to see payoff diagram

Breakeven

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Call Cost

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Commonly asked Synthetic Put questions

What is a synthetic put?

It is short stock combined with a long call at a strike. The payoff can resemble a long put: you benefit from downside like a put while the long call caps tail risk above the call strike in the combined position.

Why use synthetic put instead of buying a put?

Sometimes puts are expensive or liquidity is thin; combining stock and calls can be more flexible. Costs, margin, and dividends all affect which structure is better.

How do you think about breakeven?

Roughly, breakeven ties to the short stock entry minus call premium per share (model-specific). Use the calculator inputs to see payoff and breakeven for your strikes and premiums.

What are the main risks?

Short stock has unlimited loss if the stock rises; the long call offsets losses above the call strike but you pay premium. Dividends and borrow fees on short stock matter.

Synthetic put vs long put?

Both express bearish views with defined option legs, but financing, margin, and tax treatment differ. Long put is a single option; synthetic uses stock plus call.