Long Synthetic Forward

This strategy amounts to buying an ATM call option and selling an ATM put option with a strike price K = S0 . This can be a net debit or net credit trade. Typically, |H| ≪ S0 . The trader’s outlook is bullish: this strategy mimics a long stock or futures position; it replicates a long forward contract with the delivery price K and the same maturity as the options. This is a capital gain strategy.