A synthetic futures which is created by combining a long call option and a short put option on the same underlying futures, at the same strike price, and with both options expiring on the same date. This unlimited-profit, unlimited-risk futures option position is established to replicate the payoff of a long futures position and to hedge a short position in futures. The position created by a synthetic long futures is entered into by buying at-the-money calls while selling an equivalent number of at-the-money puts having the same underlying futures contract and expiring in the same month.

Providing an alternative to buy the futures outright, this synthetic strategy is usually pursued when an investor is bullish on the underlying futures.