SHORT GUTS	SYNTHETIC LONG CALL
About Strategy	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in 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..

SHORT GUTS Vs SYNTHETIC LONG CALL - Details

	SHORT 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	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	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Underlying Price + Put Premium

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

	SHORT 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 bearish on volatility i.e. he expects the stock to be range bound in the near future.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell 1 ITM Call, Sell 1 ITM Put	Buy 1 ATM Put or OTM Put
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Underlying Price + Put Premium

SHORT GUTS Vs SYNTHETIC LONG CALL - Risk & Reward

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

SHORT GUTS Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	SHORT GUTS	SYNTHETIC LONG CALL
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Protective Put, Long Call
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.