SYNTHETIC LONG CALL	MARRIED 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..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

SYNTHETIC LONG CALL Vs MARRIED PUT - Details

	SYNTHETIC LONG CALL	MARRIED PUT
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	1
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	Purchase Price of Underlying + Premium Paid

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

	SYNTHETIC LONG CALL	MARRIED PUT
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 work when the investor goes long in any stock. He expects the rise in market in future.
Action	Buy 1 ATM Put or OTM Put	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Underlying Price + Put Premium	Purchase Price of Underlying + Premium Paid

SYNTHETIC LONG CALL Vs MARRIED PUT - Risk & Reward

	SYNTHETIC LONG CALL	MARRIED PUT
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Premium Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs MARRIED PUT - Strategy Pros & Cons

	SYNTHETIC LONG CALL	MARRIED PUT
Similar Strategies	Protective Put, Long Call	Long Call
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	Cost of the put options eats into profit margin.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	Unlimited Profit and Limited Risk