Option Strategy: Buy stock, Buy Put, Synthetic Call

synrhetic long callAfter discussing Long Call and short Call strategy, the next strategy for option trading strategy is Buy stock and Buy Put.
This is a low-risk strategy, traders can limit the loss in case of fall in the market, but potential profit  is unlimited.
In this strategy, we purchase a stock since we feel bullish about it but what if the price of stock went down…..
you wish you had some insurance against price fall,  so buy a put on the stock this give you right sell on stocks at a certain price which is the strike price. The strike price can be the price at which you bought the stock (ATM strike price) or slightly below (OTM strike price).
In case, the price of the stock rises you get the full benefit of price rise. In case the price of the stock falls,  exercise the put option because put option is a right to sell and stops your further losses.
The Result of this strategy is looks like Call Option Buy strategy and, therefore,  is called a Synthetic Call.