SYNTHETIC LONG CALL	BEAR CALL SPREAD
About Strategy	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..	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. Read more..

SYNTHETIC LONG CALL Vs BEAR CALL SPREAD - Details

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

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

	SYNTHETIC LONG CALL	BEAR CALL SPREAD
Market View	Bullish	Bearish
When to use?	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buy 1 ATM Put or OTM Put	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Underlying Price + Put Premium	Strike Price of Short Call + Net Premium Received

SYNTHETIC LONG CALL Vs BEAR CALL SPREAD - Risk & Reward

	SYNTHETIC LONG CALL	BEAR CALL SPREAD
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs BEAR CALL SPREAD - Strategy Pros & Cons

	SYNTHETIC LONG CALL	BEAR CALL SPREAD
Similar Strategies	Protective Put, Long Call	Bear Put Spread, Bull Call Spread
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.