# (Stock)/Option Positions

I'm studying for my SIE, and I have a question along the lines of Difference between naked put, covered put, protective put. Can someone help me fill in my "??"'s?

"Long (stock)/Long call= Married call" in a hedge position

"Long (stock)/Long put = Protective put" in a hedge position

"Long (stock)/Short call = Covered call" in a premium generation position

"Long (stock)/Short put = ??" in a premium generation position

"Short (stock)/Long call = ??" in a hedge position

"Short (stock)/Long put = ??" in a hedge position

"Short (stock)/Short call = ??" in a premium generation position

"Cash/Short put = Covered put" [Maximum risk is cash-on-hand] in a premium generation position

"Short (stock)/Short put = Naked put" [UNLIMITED RISK!!] in a premium generation option position

Sorry, I know I should be able to answer most of these questions myself -- and, I'm sure some of the combinations don't even make sense -- but it's a lot of material in a short space of time, and I'm having trouble processing it all; I would really appreciate any help anyone can give me. Thanks much in advance.

## 1 Answer

Answering the questions for you won't help you learn. Understanding the core concept might.

There are 6 basic synthetic positions relating to combinations of put options, call options and their underlying stock in accordance to the synthetic triangle:

1. Synthetic Long Stock = Long Call + Short Put

2. Synthetic Short Stock = Short Call + Long Put

3. Synthetic Long Call = Long Stock + Long Put

4. Synthetic Short Call = Short Stock + Short Put

5. Synthetic Short Put = Long Stock + Short Call

6. Synthetic Long Put = Short Stock + Long Call

These are all variations of S + P - C = 0 which is the core of put/call parity (details not important here). Some resources with explanations:

http://www.theoptionsguide.com/synthetic-long-stock.aspx

https://www.brainscape.com/flashcards/option-strategies-and-synthetic-positions-4804798/packs/1767253