Strategies · Lesson 14 of 14 · Lab
Synthetic long and arbitrage
Buying a call and selling the put at the same strike replicates a long position in the underlying. On 22 September 2026 the NIFTY 23,450 pair cost ₹29.65 net, giving an effective entry of 23,479.65. The index closed at 23,329 and the structure lost ₹150.75 — within a point of what the replicated position itself would have lost.
NIFTY weekly expiry, 22 September 2026 · MarketCue one-minute option-chain capture
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A chain that actually traded, priced at the open. Click once to buy, twice to sell, a third time to clear.
Prices captured at the open on Tuesday, 22 September 2026. NIFTY spot at the open: 23,460. The highlighted row is nearest the money.
NIFTY closed at 23,329, down 131 points from the open. Bought 23,450 CE at ₹64.50 → settled ₹0.05. Sold 23,450 PE at ₹34.85 → settled ₹121.15. Net loss of ₹150.75 per unit, or −508% of what was put up. This was the expiry, so those closing prices are settlement values.
A straight line made of two bends
The call and the put at one strike each have a kink at that strike. Buy one and sell the other and the kinks cancel: the payoff becomes a straight line at 45 degrees, which is the payoff of holding the underlying itself.
The two presets make this visible. Long call plus short put slopes up like a long position; reverse both and it slopes down. Switch to the straddle preset — the same two contracts, both bought — and the line becomes a V. Which contracts you use matters less than which side you take.
The replication held
The pair cost ₹29.65 net, so the effective entry was 23,479.65. The index closed at 23,329, which is 150.65 points lower, and the structure lost ₹150.75 — a ten-paise discrepancy attributable to settlement ticks.
This is put-call parity as an observation rather than a formula: the relationship between a call, a put and the underlying at one strike is an identity, not an approximation. Where the synthetic and the actual future diverge by more than carrying costs, the gap is arbitrage — and it is closed by participants for whom the execution costs are small enough to make it worth taking.
Common questions
What is a synthetic long position?
Two legs assembled so their kinks cancel, leaving the straight line of holding the index itself. Long the call, short the put, one strike between them. What you pay net fixes the effective entry — ₹29.65 above 23,450, so 23,479.65.
What is put-call parity?
The fixed relationship between a call, a put at the same strike, and the underlying. On 22 September 2026 a synthetic long at 23,450 lost ₹150.75 against a replicated position that would have lost ₹150.65 — the identity holding to within settlement rounding.
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How these figures are produced
Every price on these pages was traded on the exchange and is read from our own option-chain capture, which records the NIFTY and SENSEX chains once a minute through the session. Each page names the session its figures come from.
Figures that a model produced rather than the market — the Greeks, implied volatility — are labelled as model outputs wherever they appear, and never presented beside traded prices without saying which is which. The pricing is checked against published reference values on every change.
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