SYNTHETIC LONG CALL	STRIP
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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

SYNTHETIC LONG CALL Vs STRIP - Details

	SYNTHETIC LONG CALL	STRIP
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
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	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

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

	SYNTHETIC LONG CALL	STRIP
Market View	Bullish	Neutral
When to use?	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Buy 1 ATM Put or OTM Put	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

SYNTHETIC LONG CALL Vs STRIP - Risk & Reward

	SYNTHETIC LONG CALL	STRIP
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Premium Paid	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs STRIP - Strategy Pros & Cons

	SYNTHETIC LONG CALL	STRIP
Similar Strategies	Protective Put, Long Call	Strap, Short Put Ladder
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.