RATIO CALL SPREAD	SYNTHETIC LONG CALL
About Strategy	Ratio Call Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited since he is 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..

RATIO CALL SPREAD Vs SYNTHETIC LONG CALL - Details

	RATIO CALL SPREAD	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Beginners	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	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received	Underlying Price + Put Premium

RATIO CALL SPREAD Vs SYNTHETIC LONG CALL - When & How to use ?

	RATIO CALL SPREAD	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is used by trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited since he is selling two calls.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy 1 ITM Call, Sell 2 OTM Calls	Buy 1 ATM Put or OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received	Underlying Price + Put Premium

RATIO CALL SPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	RATIO CALL SPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO CALL SPREAD Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	RATIO CALL SPREAD	SYNTHETIC LONG CALL
Similar Strategies	Variable Ratio Write	Protective Put, Long Call
Disadvantage	• Unlimited potential loss. • Complex strategy with limited profit.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.