Assuming a stock doesnât pay dividends and I am willing to buy today and intend to hold it fairly long term, am I normally better with the synthetic equivalent â long call, short put? (any tax/capital gains issues aside) Appears that the downside vs buying the stock outright is two commissions and two spreads, both of which are normally wider than the spread on the underlying. But if I am going to hold long enough that this is offset from the interest I earn from keeping the cash I would have spent on the stock, seems Iâm better off from that point on. Is that correct? If so, should I chose the synthetic with the highest strike â that way I am selling an expensive put and have more cash to earn interest on. Seems like the risk here would be that the put would be assigned, so I need to make sure Iâm selling at something over parity so I donât get assigned the same day. If do get assigned, it just equates to a small discount (equal to time value of sold put) on the stock, which I was ready to buy outright from the beginning. Still make sense? So hereâs where I really get confused. If I can go both long and short via synthetics for a credit, that looks like a free loan until expiration â only there are now four spreads to deal with. Does the slippage normally eat up any interest I could have earned on the credits? One thing Iâve learned during my foray thus far into trading is that anytime I see something that looks like free money, at least for a retail trader, it pretty much always means Iâve either misunderstood something or overlooked a significant risk. Usually both!