Put-Call Equivalency Table

The following stock options / shares positions are identical in theory and are useful for evaluating if the same objective can be obtained in a better way.

But identical prices are not necessarily guaranteed because what is essentially ignored are interest costs on money spent to buy stocks and complying with margin requirements for short options and dividends received on stock ownership or dividends paid on short stocks.

• Long 1 call = Long 1 put and long 100 shares of stock
• Long 1 put = Long 1 call and short 100 shares
• Long 100 shares and short 1 call (covered writing position) = Short 1 put
• Short 100 shares and short 1 put = Short 1 call
• Long 1 put and long 1 call (long a straddle) = Short 100 shares and long 2 calls, or Long 100 shares and long 2 puts
• Short 1 call and short 1 put (short a straddle) = Long 100 shares and short 2 calls, or Short 100 shares and short 2 puts
• Long 1 straddle and short 100 shares = Short 200 shares and long 2 calls, or Long 2 puts
• Long 1 straddle and long 100 shares = Long 2 calls, or Long 200 shares and long 2 puts
• Short 1 straddle and short 100 shares = Short 2 calls, or Short 200 shares and short 2 puts
• Short 1 straddle and long 100 shares = Long 200 shares and short 2 calls, or Short 2 puts

Data extracted from The New Options Market by Max Ansbacher