synthetic stock

Synthetic stock

An option strategy that is equivalent to the underlying stock. A long call and a short put is synthetic long stock. A long put and a short call is sythetic short stock.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Synthetic Stock

A position in which one owns a call option and has sold a put option on the same underlying asset, which is a stock. A synthetic stock acts like a stock because both open the investor to theoretically unlimited gains and losses depending on the price movements of the stock. Because of this, a synthetic stock is taxed like a regular stock.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

synthetic stock

The purchase of a call and simultaneous sale of a put on the same stock. This combination produces unlimited potential gains if the stock rises but unlimited potential losses if the stock falls—the same results as if the stock were owned.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The stock is the same synthetic stock that's available on some of the T3x rifles, the action shares the same bedding footprint as the T3x, the trigger is the same trigger found on Tikka centerfire rifles, and the trigger plate has the same dimensions.
It comes with a 17-inch barrel with a threaded muzzle, a Magpul synthetic stock, and a 10-round detachable rotary magazine.
The entire gun, including the Realtree or black synthetic stock, is ambidextrous, and the trigger is adjustable.
I have a limited budget and wanted a hunting arm, so it has a synthetic stock and matte-blue finish on the action and 26-inch barrel.
The synthetic stock and forend comes in a variety of colors, including black and different camo patterns.
The Montefeltro's long run as the graceful walnut- and-steel semi-auto is not over by any stretch, but the slenderness and fluidity for which the reliable inertia action gun is known will get a rugged face-lift this year in the form of an optional synthetic stock that will give it the kind of bottom-of-the-boat durability most duck hunters prefer.
The synthetic stock and fore-end feature rubber inserts to provide a firm grip in all conditions.
"The equity incentives became so big and so powerful in public companies that private companies had to come up with something, whether it's an extra fancy bonus plan or a synthetic stock plan," says Crystal.
Consumables: PS paper stock, PS film stock, PS foil stock, PS nonwoven stock, PS holographic stock, PS synthetic stock, PS thermal stock, PS other stock
Full browser ?