LONG CALL	SYNTHETIC LONG CALL
About Strategy	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. 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..

LONG CALL Vs SYNTHETIC LONG CALL - Details

	LONG CALL	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginner Level	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	Strike Price + Premium	Underlying Price + Put Premium

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

	LONG CALL	SYNTHETIC LONG CALL
Market View	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)	Bullish
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buying Call option	Buy 1 ATM Put or OTM Put
Breakeven Point	Strike price + Premium	Underlying Price + Put Premium

LONG CALL Vs SYNTHETIC LONG CALL - Risk & Reward

	LONG CALL	SYNTHETIC LONG CALL
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG CALL Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	LONG CALL	SYNTHETIC LONG CALL
Similar Strategies	Protective Put	Protective Put, Long Call
Disadvantage	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.