SYNTHETIC LONG CALL	SHORT 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..	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < .. Read more..

SYNTHETIC LONG CALL Vs SHORT GUTS - Details

	SYNTHETIC LONG CALL	SHORT 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	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	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

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

	SYNTHETIC LONG CALL	SHORT 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 bearish on volatility i.e. he expects the stock to be range bound in the near future.
Action	Buy 1 ATM Put or OTM Put	Sell 1 ITM Call, Sell 1 ITM Put
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

SYNTHETIC LONG CALL Vs SHORT GUTS - Risk & Reward

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

SYNTHETIC LONG CALL Vs SHORT GUTS - Strategy Pros & Cons

	SYNTHETIC LONG CALL	SHORT GUTS
Similar Strategies	Protective Put, Long Call	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.