SHORT STRADDLE	SYNTHETIC LONG CALL
About Strategy	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an Read more..	Synthetic Long Call Option Strategy A trader is bullish in nature for short term, but also fearful about the downside risk associated with it. Here, a trader wants to hold an underlying asset either in physical form like in case of commodities or demat (electronic) form in case of stocks. But he is always exposed to downside risk and in order to mitigate his losses, .. Read more..

SHORT STRADDLE Vs SYNTHETIC LONG CALL - Details

	SHORT STRADDLE	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Unlimited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Underlying Price + Put Premium

SHORT STRADDLE Vs SYNTHETIC LONG CALL - When & How to use ?

	SHORT STRADDLE	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell Call Option, Sell Put Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Underlying Price + Put Premium

SHORT STRADDLE Vs SYNTHETIC LONG CALL - Risk & Reward

	SHORT STRADDLE	SYNTHETIC LONG CALL
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRADDLE Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	SHORT STRADDLE	SYNTHETIC LONG CALL
Similar Strategies	Short Strangle	Protective Put, Long Call
Disadvantage	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.