CALL BACKSPREAD	SYNTHETIC LONG CALL
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r 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..

CALL BACKSPREAD Vs SYNTHETIC LONG CALL - Details

	CALL BACKSPREAD	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Limited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Underlying Price + Put Premium

CALL BACKSPREAD Vs SYNTHETIC LONG CALL - When & How to use ?

	CALL BACKSPREAD	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy 1 ATM Put or OTM Put
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Underlying Price + Put Premium

CALL BACKSPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	CALL BACKSPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

CALL BACKSPREAD Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	CALL BACKSPREAD	SYNTHETIC LONG CALL
Similar Strategies	-	Protective Put, Long Call
Disadvantage		•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Unlimited profit potential.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.