LONG PUT	SYNTHETIC LONG CALL
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< 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 PUT Vs SYNTHETIC LONG CALL - Details

	LONG PUT	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	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	Strike Price of Long Put - Premium Paid	Underlying Price + Put Premium

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

	LONG PUT	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy Put Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Strike Price of Long Put - Premium Paid	Underlying Price + Put Premium

LONG PUT Vs SYNTHETIC LONG CALL - Risk & Reward

	LONG PUT	SYNTHETIC LONG CALL
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG PUT Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	LONG PUT	SYNTHETIC LONG CALL
Similar Strategies	Protective Call, Short Put	Protective Put, Long Call
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.