SHORT CALL BUTTERFLY	SYNTHETIC LONG CALL
About Strategy	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the 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 CALL BUTTERFLY Vs SYNTHETIC LONG CALL - Details

	SHORT CALL BUTTERFLY	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	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 Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Underlying Price + Put Premium

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

	SHORT CALL BUTTERFLY	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy 1 ATM Put or OTM Put
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Underlying Price + Put Premium

SHORT CALL BUTTERFLY Vs SYNTHETIC LONG CALL - Risk & Reward

	SHORT CALL BUTTERFLY	SYNTHETIC LONG CALL
Maximum Profit Scenario	The profit is limited to the net premium received.	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT CALL BUTTERFLY Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	SYNTHETIC LONG CALL
Similar Strategies	Long Straddle, Long Call Butterfly	Protective Put, Long Call
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.