SYNTHETIC LONG CALL	RATIO PUT SPREAD
About Strategy	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 Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. This strategy is used by a 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. Read more..

SYNTHETIC LONG CALL Vs RATIO PUT SPREAD - Details

	SYNTHETIC LONG CALL	RATIO PUT SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	3
Strategy Level	Beginners	Beginners
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid	Limited
Risk Profile	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)	Unlimited
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

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

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

SYNTHETIC LONG CALL Vs RATIO PUT SPREAD - Risk & Reward

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

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

	SYNTHETIC LONG CALL	RATIO PUT SPREAD
Similar Strategies	Protective Put, Long Call	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Unlimited potential risk. • Limited profit.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.