SYNTHETIC LONG CALL	LONG CALL
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..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

SYNTHETIC LONG CALL Vs LONG CALL - Details

	SYNTHETIC LONG CALL	LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginner Level
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid	Unlimited
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 + Premium

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

	SYNTHETIC LONG CALL	LONG CALL
Market View	Bullish	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buy 1 ATM Put or OTM Put	Buying Call option
Breakeven Point	Underlying Price + Put Premium	Strike price + Premium

SYNTHETIC LONG CALL Vs LONG CALL - Risk & Reward

	SYNTHETIC LONG CALL	LONG CALL
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs LONG CALL - Strategy Pros & Cons

	SYNTHETIC LONG CALL	LONG CALL
Similar Strategies	Protective Put, Long Call	Protective Put
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.