SYNTHETIC LONG CALL	CALL BACKSPREAD
About Strategy	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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

SYNTHETIC LONG CALL Vs CALL BACKSPREAD - Details

	SYNTHETIC LONG CALL	CALL BACKSPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid	Unlimited
Risk Profile	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)	Limited
Breakeven Point	Underlying Price + Put Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	SYNTHETIC LONG CALL	CALL BACKSPREAD
Market View	Bullish	Bullish
When to use?	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Buy 1 ATM Put or OTM Put	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Underlying Price + Put Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SYNTHETIC LONG CALL Vs CALL BACKSPREAD - Risk & Reward

	SYNTHETIC LONG CALL	CALL BACKSPREAD
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Premium Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs CALL BACKSPREAD - Strategy Pros & Cons

	SYNTHETIC LONG CALL	CALL BACKSPREAD
Similar Strategies	Protective Put, Long Call	-
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Unlimited profit potential.