SHORT CALL	SYNTHETIC LONG CALL
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy 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 Vs SYNTHETIC LONG CALL - Details

	SHORT CALL	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Unlimited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Strike Price of Short Call + Premium Received	Underlying Price + Put Premium

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

	SHORT CALL	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell or Write Call Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Strike Price of Short Call + Premium Received	Underlying Price + Put Premium

SHORT CALL Vs SYNTHETIC LONG CALL - Risk & Reward

	SHORT CALL	SYNTHETIC LONG CALL
Maximum Profit Scenario	Max Profit = Premium Received	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	SHORT CALL	SYNTHETIC LONG CALL
Similar Strategies	Covered Put, Covered Calls	Protective Put, Long Call
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.