SYNTHETIC LONG CALL	LONG GUTS
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 Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< .. Read more..

SYNTHETIC LONG CALL Vs LONG GUTS - Details

	SYNTHETIC LONG CALL	LONG GUTS
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
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	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	SYNTHETIC LONG CALL	LONG GUTS
Market View	Bullish	Neutral
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 implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.
Action	Buy 1 ATM Put or OTM Put	Buy 1 ITM Call, Buy 1 ITM Put
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

SYNTHETIC LONG CALL Vs LONG GUTS - Risk & Reward

	SYNTHETIC LONG CALL	LONG GUTS
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Price of Underlying - Strike Price of Long Call - Net Premium Paid OR Strike Price of Long Put - Price of Underlying - Premium Paid
Maximum Loss Scenario	Premium Paid	Net Premium Paid + Strike Price of Long Put - Strike Price of Long Call + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs LONG GUTS - Strategy Pros & Cons

	SYNTHETIC LONG CALL	LONG GUTS
Similar Strategies	Protective Put, Long Call	Short Put Ladder, Strip, Strap
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• More commission involved than simply buying call or put option. • Expensive.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.