Strategy — Sell Put And Buy Call

: Sell an At-The-Money (ATM) put and buy an ATM call.

The strategy of is known as a Synthetic Long Stock position when both options have the same strike price, or a Risk Reversal when they have different strike prices. This strategy mimics the risk and reward profile of owning the underlying stock but with significantly less capital. Core Papers and Resources sell put and buy call strategy

: You have unlimited upside but also face "uncapped" downside risk identical to owning the stock. Risk Reversal (Different Strikes) : : Sell an At-The-Money (ATM) put and buy an ATM call