SHORT PUT	SYNTHETIC LONG CALL
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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 PUT Vs SYNTHETIC LONG CALL - Details

	SHORT PUT	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	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	Strike Price - Premium	Underlying Price + Put Premium

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

	SHORT PUT	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell Put Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Strike Price - Premium	Underlying Price + Put Premium

SHORT PUT Vs SYNTHETIC LONG CALL - Risk & Reward

	SHORT PUT	SYNTHETIC LONG CALL
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT PUT Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	SHORT PUT	SYNTHETIC LONG CALL
Similar Strategies	Bull Put Spread, Short Starddle	Protective Put, Long Call
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.