Bullish Patterns
Long Calls
Bull Call Spread
Bull Put Spread
Call Backspread
Long Call Ratio Spread
Naked Put
Synthetic Long Stock
The Collar
Covered Calls
Synthetic Long Call
Synthetic Short Put
Covered Straddle
Covered Strangle
Married Put
Protective Put

Bearish Patterns
Long Puts
Bear Put Spread
Bear Call Spread
Put Backspread
Long Put Ratio Spread
Naked Calls
Synthetic Short Stock
Synthetic Short Stock (split strikes)
Covered Put
Protective Call
Synthetic Short Call
Synthetic Long Put

Long Volatility
Long Straddle
Long Strangle
Short Call Butterfly
Short Put Butterfly
Short Iron Butterfly
Short Call Condor
Short Put Condor
Short Iron Condor
Long Guts
Short Call Ladder
Short Put Ladder
Long Call Synthetic Straddle
Long Put Synthetic Straddle

Short Volatility
Short Straddle
Short Strangle
Long Call Butterfly
Long Put Butterfly
Long Iron Butterfly
Long Call Condor
Long Put Condor
Long Iron Condor
Short Guts
Long Call Ladder
Long Put Ladder
Call Ratio Spread
Short Call Ratio Spread
Put Ratio Spread
Short Put Ratio Spread
Ratio Call Write
Ratio Put Write
Short Call Synthetic Straddle
Short Put Synthetic Straddle
Variable Ratio Write

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Synthetic Long Call

Risk: limited
Reward: unlimited

General Description
Entering a synthetic long call entails buying puts against a stock you already own (or are currently buying). It has the same risk profile as a long call (hence why it's considered a synthetic long call); married put and protective put are types of synthetic long calls.

(draw a synthetic long call risk diagram here)

The Thinking
You want the benefits of stock ownership (collecting dividends, potential price appreciation), but you want some downside protection.

XYZ is at $50. You want to buy the stock to benefit from both a move up and dividend payments but are weary of a move down because the overall market is weakening. You buy 100 shares of the stock at $50 and then buy (1) 50 put for $3.00.

If the stock closes above $50, the puts expire worthless, and you’re out the net debit. At least you keep the stock and benefit from ownership (stock appreciation, dividends etc.).

Below $50, the loss from the stock will be countered by a gain from the long put. You loss is capped at $3, the put premium paid.

The PL chart below graphically shows where this trade will be profitable and at a loss.