LONG STRADDLE	SYNTHETIC LONG CALL
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc 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..

LONG STRADDLE Vs SYNTHETIC LONG CALL - Details

	LONG STRADDLE	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	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	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Underlying Price + Put Premium

LONG STRADDLE Vs SYNTHETIC LONG CALL - When & How to use ?

	LONG STRADDLE	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy Call Option, Buy Put Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Underlying Price + Put Premium

LONG STRADDLE Vs SYNTHETIC LONG CALL - Risk & Reward

	LONG STRADDLE	SYNTHETIC LONG CALL
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG STRADDLE Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	LONG STRADDLE	SYNTHETIC LONG CALL
Similar Strategies	Bear Put Spread	Protective Put, Long Call
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.