RISK REVERSAL	SYNTHETIC LONG CALL
About Strategy	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod 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..

RISK REVERSAL Vs SYNTHETIC LONG CALL - Details

	RISK REVERSAL	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	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	Premium received - Put Strike Price	Underlying Price + Put Premium

RISK REVERSAL Vs SYNTHETIC LONG CALL - When & How to use ?

	RISK REVERSAL	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
When to use?	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buy 1 ATM Put or OTM Put
Breakeven Point	Premium received - Put Strike Price	Underlying Price + Put Premium

RISK REVERSAL Vs SYNTHETIC LONG CALL - Risk & Reward

	RISK REVERSAL	SYNTHETIC LONG CALL
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Premium Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

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