Stock Option Strategy-Bull Market Trading Strategy

Synthetic Stock Long Strategy
    Investors anticipate a bull market and can sell a put with an exercise price that is closer to the current stock priceoptionAt the same time, buy a call option with the same maturity date and exercise price to synthesize a long position in the stock. The reason why investors buy synthetic stock positions instead of buying stocks themselves is that the investment required for synthetic positions is much smaller than the investment required for buying stocks. Although putting an option requires a deposit and the actual amount of funds required will increase, there is still a high level of leverage.

Bull Spread
    When investors anticipate a relatively small bull market, they can buy a call option with a lower strike price and sell a call option with the same expiration date and a higher strike price (or they can build it by buying a put option with a lower strike price and selling a put option with the same expiration date and a higher strike price). Compared to simply buying call options, it reduces construction costs but also limits the upside potential.