DIAGONAL BULL CALL SPREAD	SYNTHETIC LONG CALL
About Strategy	Diagonal Bull Call Spread Option Strategy This strategy is implemented by a trader when he is neutral – moderately bullish in the near-month contract and bullish in the mid-month contract. It involves sale of 1 Near-Month OTM Call Option and buying of 1 Mid Month ITM Call Option. Risk: Read more..	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..

DIAGONAL BULL CALL SPREAD Vs SYNTHETIC LONG CALL - Details

	DIAGONAL BULL CALL SPREAD	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Limited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point		Underlying Price + Put Premium

DIAGONAL BULL CALL SPREAD Vs SYNTHETIC LONG CALL - When & How to use ?

	DIAGONAL BULL CALL SPREAD	SYNTHETIC LONG CALL
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.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Buy 1 ATM Put or OTM Put
Breakeven Point		Underlying Price + Put Premium

DIAGONAL BULL CALL SPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	DIAGONAL BULL CALL SPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario		Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario		Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

DIAGONAL BULL CALL SPREAD Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	SYNTHETIC LONG CALL
Similar Strategies	Bull Put Spread	Protective Put, Long Call
Disadvantage		•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages		•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.