SYNTHETIC LONG CALL	PROTECTIVE CALL
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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

SYNTHETIC LONG CALL Vs PROTECTIVE CALL - Details

	SYNTHETIC LONG CALL	PROTECTIVE CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
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	Sale Price of Underlying + Premium Paid

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

	SYNTHETIC LONG CALL	PROTECTIVE CALL
Market View	Bullish	Bearish
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 implemented when a trader is bearish on the market and expects to go down.
Action	Buy 1 ATM Put or OTM Put	Buy 1 ATM Call
Breakeven Point	Underlying Price + Put Premium	Sale Price of Underlying + Premium Paid

SYNTHETIC LONG CALL Vs PROTECTIVE CALL - Risk & Reward

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

SYNTHETIC LONG CALL Vs PROTECTIVE CALL - Strategy Pros & Cons

	SYNTHETIC LONG CALL	PROTECTIVE CALL
Similar Strategies	Protective Put, Long Call	Put Backspread, Long Put
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.