LONG GUTS	SYNTHETIC LONG CALL
About Strategy	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< 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..

LONG GUTS Vs SYNTHETIC LONG CALL - Details

	LONG GUTS	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	Beginners	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	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Underlying Price + Put Premium

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

	LONG GUTS	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy 1 ITM Call, Buy 1 ITM Put	Buy 1 ATM Put or OTM Put
Breakeven Point	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Underlying Price + Put Premium

LONG GUTS Vs SYNTHETIC LONG CALL - Risk & Reward

	LONG GUTS	SYNTHETIC LONG CALL
Maximum Profit Scenario	Price of Underlying - Strike Price of Long Call - Net Premium Paid OR Strike Price of Long Put - Price of Underlying - Premium Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Net Premium Paid + Strike Price of Long Put - Strike Price of Long Call + Commissions Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG GUTS Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	LONG GUTS	SYNTHETIC LONG CALL
Similar Strategies	Short Put Ladder, Strip, Strap	Protective Put, Long Call
Disadvantage	• More commission involved than simply buying call or put option. • Expensive.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.