SHORT STRANGLE	SYNTHETIC LONG CALL
About Strategy	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 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 Vs SYNTHETIC LONG CALL - Details

	SHORT STRANGLE	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	Advance	Beginners
Reward Profile	Limited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Unlimited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Underlying Price + Put Premium

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

	SHORT STRANGLE	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell OTM Call, Sell OTM Put	Buy 1 ATM Put or OTM Put
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Underlying Price + Put Premium

SHORT STRANGLE Vs SYNTHETIC LONG CALL - Risk & Reward

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

SHORT STRANGLE Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	SHORT STRANGLE	SYNTHETIC LONG CALL
Similar Strategies	Short Straddle, Long Strangle	Protective Put, Long Call
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• 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.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.