BEAR CALL SPREAD	SYNTHETIC LONG CALL
About Strategy	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r 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..

BEAR CALL SPREAD Vs SYNTHETIC LONG CALL - Details

	BEAR CALL SPREAD	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	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 of Short Call + Net Premium Received	Underlying Price + Put Premium

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

	BEAR CALL SPREAD	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
When to use?	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Strike Price of Short Call + Net Premium Received	Underlying Price + Put Premium

BEAR CALL SPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	BEAR CALL SPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR CALL SPREAD Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	BEAR CALL SPREAD	SYNTHETIC LONG CALL
Similar Strategies	Bear Put Spread, Bull Call Spread	Protective Put, Long Call
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.