SYNTHETIC LONG CALL	LONG COMBO
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 Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received .. Read more..

SYNTHETIC LONG CALL Vs LONG COMBO - Details

	SYNTHETIC LONG CALL	LONG COMBO
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	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	Unlimited
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	Call Strike + Net Premium

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

	SYNTHETIC LONG CALL	LONG COMBO
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.	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	Buy 1 ATM Put or OTM Put	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Underlying Price + Put Premium	Call Strike + Net Premium

SYNTHETIC LONG CALL Vs LONG COMBO - Risk & Reward

	SYNTHETIC LONG CALL	LONG COMBO
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Premium Paid	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs LONG COMBO - Strategy Pros & Cons

	SYNTHETIC LONG CALL	LONG COMBO
Similar Strategies	Protective Put, Long Call	-
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.