Short Synthetic Forward

This strategy amounts to buying an ATM put option and selling an ATM call 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 bearish: this strategy mimics a short stock or futures position; it replicates a short forward contract with the delivery price K and the same maturity as the options. This is a capital gain strategy.