BULL PUT SPREAD	SYNTHETIC LONG CALL
About Strategy	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem 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..

BULL PUT SPREAD Vs SYNTHETIC LONG CALL - Details

	BULL PUT SPREAD	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	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	Strike price of short put - net premium paid	Underlying Price + Put Premium

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

	BULL PUT SPREAD	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
When to use?	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Strike price of short put - net premium paid	Underlying Price + Put Premium

BULL PUT SPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	BULL PUT SPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario	Max Profit = Net Premium Received	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	BULL PUT SPREAD	SYNTHETIC LONG CALL
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Protective Put, Long Call
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.