Synthetic put option is a financial derivative trading strategy, also known as synthetic put option. This strategy is to simulate or synthesize the effect of selling options by combining different financial instruments, so as to obtain the investment income and risk characteristics similar to selling options.

The basic idea of synthetic put option is to use the hedging principle of option contract to simulate the effect of put option by holding other financial instruments at the same time.

The strategy of synthesizing put options usually involves the following operations:

Buy call option or put option: investors first buy the corresponding call option or put option, which is the basis of constructing synthetic put option.

Selling the corresponding underlying assets: In order to hedge the risk of the option contract, investors sell a corresponding number of underlying assets (such as stocks or futures), thus offsetting the impact of the market value of the option contract on the asset value.

Through the above operations, investors can simulate the effect of put options and obtain investment returns and risk characteristics similar to put options. The advantage of synthetic put options is that investors can realize similar investment strategies by buying options and hedging the underlying assets without actually selling options.