SYNTHETIC LONG CALL	COVERED PUT
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..	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

SYNTHETIC LONG CALL Vs COVERED PUT - Details

	SYNTHETIC LONG CALL	COVERED PUT
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option) + Underlying
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)	Unlimited
Breakeven Point	Underlying Price + Put Premium	Futures Price + Premium Received

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

	SYNTHETIC LONG CALL	COVERED PUT
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.	The Covered Put works well when the market is moderately Bearish.
Action	Buy 1 ATM Put or OTM Put	Sell Underlying Sell OTM Put Option
Breakeven Point	Underlying Price + Put Premium	Futures Price + Premium Received

SYNTHETIC LONG CALL Vs COVERED PUT - Risk & Reward

	SYNTHETIC LONG CALL	COVERED PUT
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Premium Paid	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs COVERED PUT - Strategy Pros & Cons

	SYNTHETIC LONG CALL	COVERED PUT
Similar Strategies	Protective Put, Long Call	Bear Put Spread, Bear Call Spread
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.