SYNTHETIC LONG CALL	SHORT 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..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

SYNTHETIC LONG CALL Vs SHORT PUT - Details

	SYNTHETIC LONG CALL	SHORT 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	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	Strike Price - Premium

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

	SYNTHETIC LONG CALL	SHORT 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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy 1 ATM Put or OTM Put	Sell Put Option
Breakeven Point	Underlying Price + Put Premium	Strike Price - Premium

SYNTHETIC LONG CALL Vs SHORT PUT - Risk & Reward

	SYNTHETIC LONG CALL	SHORT PUT
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Premium Paid	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs SHORT PUT - Strategy Pros & Cons

	SYNTHETIC LONG CALL	SHORT PUT
Similar Strategies	Protective Put, Long Call	Bull Put Spread, Short Starddle
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.