RATIO PUT SPREAD	SYNTHETIC LONG CALL
About Strategy	Ratio Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. 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..

RATIO PUT SPREAD Vs SYNTHETIC LONG CALL - Details

	RATIO PUT SPREAD	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	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 = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)	Underlying Price + Put Premium

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

	RATIO PUT SPREAD	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Buy 1 ATM Put or OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)	Underlying Price + Put Premium

RATIO PUT SPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	RATIO PUT SPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

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

	RATIO PUT SPREAD	SYNTHETIC LONG CALL
Similar Strategies	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)	Protective Put, Long Call
Disadvantage	• Unlimited potential risk. • Limited profit.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.