SYNTHETIC LONG CALL	BULL PUT 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..	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem .. Read more..

SYNTHETIC LONG CALL Vs BULL PUT SPREAD - Details

	SYNTHETIC LONG CALL	BULL PUT SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
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 put - net premium paid

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

	SYNTHETIC LONG CALL	BULL PUT SPREAD
Market View	Bullish	Bullish
When to use?	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.
Action	Buy 1 ATM Put or OTM Put	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Underlying Price + Put Premium	Strike price of short put - net premium paid

SYNTHETIC LONG CALL Vs BULL PUT SPREAD - Risk & Reward

	SYNTHETIC LONG CALL	BULL PUT SPREAD
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Max Profit = Net Premium Received
Maximum Loss Scenario	Premium Paid	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	SYNTHETIC LONG CALL	BULL PUT SPREAD
Similar Strategies	Protective Put, Long Call	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Limited profit potential. • In loss situations, time decay may go against you.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.