What Is a Synthetic Long Stock Position Using Options?

A synthetic long stock position is created by combining a long call option and a short put option with the same strike price and expiration date. According to put-call parity, this combination replicates the payoff profile of simply owning the underlying asset (e.g.

Bitcoin). This strategy allows a trader to gain directional exposure to the asset without actually holding it, which can be useful for capital efficiency or specific margin requirements.