STRIP	SYNTHETIC LONG CALL
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the 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..

STRIP Vs SYNTHETIC LONG CALL - Details

	STRIP	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	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	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Underlying Price + Put Premium

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

	STRIP	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy 1 ATM Call, Buy 2 ATM Puts	Buy 1 ATM Put or OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Underlying Price + Put Premium

STRIP Vs SYNTHETIC LONG CALL - Risk & Reward

	STRIP	SYNTHETIC LONG CALL
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRIP Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	STRIP	SYNTHETIC LONG CALL
Similar Strategies	Strap, Short Put Ladder	Protective Put, Long Call
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.