SYNTHETIC LONG CALL	SHORT STRANGLE
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 Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

SYNTHETIC LONG CALL Vs SHORT STRANGLE - Details

	SYNTHETIC LONG CALL	SHORT STRANGLE
Market View	Bullish	Neutral
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	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	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

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

	SYNTHETIC LONG CALL	SHORT STRANGLE
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 perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Buy 1 ATM Put or OTM Put	Sell OTM Call, Sell OTM Put
Breakeven Point	Underlying Price + Put Premium	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

SYNTHETIC LONG CALL Vs SHORT STRANGLE - Risk & Reward

	SYNTHETIC LONG CALL	SHORT STRANGLE
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Premium Paid	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs SHORT STRANGLE - Strategy Pros & Cons

	SYNTHETIC LONG CALL	SHORT STRANGLE
Similar Strategies	Protective Put, Long Call	Short Straddle, Long Strangle
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.