PROTECTIVE PUT	SYNTHETIC LONG CALL
About Strategy	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. 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..

PROTECTIVE PUT Vs SYNTHETIC LONG CALL - Details

	PROTECTIVE PUT	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	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	Purchase Price of Underlying + Premium Paid	Underlying Price + Put Premium

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

	PROTECTIVE PUT	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
When to use?	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy 1 ATM Put	Buy 1 ATM Put or OTM Put
Breakeven Point	Purchase Price of Underlying + Premium Paid	Underlying Price + Put Premium

PROTECTIVE PUT Vs SYNTHETIC LONG CALL - Risk & Reward

	PROTECTIVE PUT	SYNTHETIC LONG CALL
Maximum Profit Scenario	Price of Underlying - Purchase Price of Underlying - Premium Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE PUT Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	PROTECTIVE PUT	SYNTHETIC LONG CALL
Similar Strategies	Long Call, Call Backspread	Protective Put, Long Call
Disadvantage	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.