"How to Trade a Synthetic Short Stock in Singapore ?"

If you believe a stock is overvalued but don’t want to short shares directly, the Synthetic Short Stock is one of the cleanest bearish strategies in options trading. This structure lets you profit when a stock falls, while using options instead of borrowing shares — perfect for high-income traders in Singapore who want controlled downside exposure.

Quick question for you 👇 Have you ever wanted to short a stock… but hated the idea of unlimited risk?

What Is a Synthetic Short Stock?

You combine:

1️⃣ Sell a Call Option 2️⃣ Buy a Put Option

Same strike. Same expiration.

This creates a position that behaves almost exactly like shorting 100 shares — but using options instead of stock.

Why Traders Use It

✔️ Replicates short stock exposure ✔️ No need to borrow shares ✔️ Cleaner structure than naked shorting ✔️ Uses ~$1,000 per trade with proper sizing ✔️ Defined structure when managed correctly

This is the “professional way” to express a bearish view without doing something reckless.

Real ~$1,000 Example (AAPL)

AAPL is trading at $200.

A trader might:

1️⃣ Sell the 200 Call for $5.00 2️⃣ Buy the 200 Put for $5.00

Net cost ≈ $0 (or a small debit/credit depending on pricing).

Now pause and think:

👉 If AAPL drops — you profit almost like short stock 👉 If AAPL rises — the position moves against you

Same behaviour as shorting shares, but built with options.

How You Profit

1️⃣ AAPL drops sharply

The put gains value quickly. ✔️ You profit from the downside move.

2️⃣ AAPL drifts lower over time

Delta works in your favour. ✔️ You benefit from steady weakness.

3️⃣ AAPL rallies strongly

The short call moves against you. ✔️ Risk must be managed with sizing and exits

This is why professionals never short emotionally — they short structurally.

Why Singapore Professionals Use This Strategy

✔️ Efficient way to express bearish views ✔️ Avoids traditional short-selling mechanics ✔️ Powerful in downtrending markets ✔️ Fits disciplined ~$1,000 sizing ✔️ Commonly used by experienced options traders

My Honest Take

Most traders only know how to buy.

Professionals know how to profit when markets fall — calmly, logically, and without panic.

Synthetic Short Stock is not for guessing. It’s for clear conviction.

Let me ask you 👇

When markets fall, do you usually: A) Panic B) Look for opportunity

Comment A or B — I’m curious.

🚀 Learn Advanced Options Trading FREE Now !