LONG COMBO	SYNTHETIC LONG CALL
About Strategy	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received 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 COMBO Vs SYNTHETIC LONG CALL - Details

	LONG COMBO	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	Call Strike + Net Premium	Underlying Price + Put Premium

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

	LONG COMBO	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
When to use?	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell OTM Put Option, Buy OTM Call Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Call Strike + Net Premium	Underlying Price + Put Premium

LONG COMBO Vs SYNTHETIC LONG CALL - Risk & Reward

	LONG COMBO	SYNTHETIC LONG CALL
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Premium Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

LONG COMBO Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	LONG COMBO	SYNTHETIC LONG CALL
Similar Strategies	-	Protective Put, Long Call
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.