SYNTHETIC LONG CALL	BULL CALL SPREAD
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..	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. .. Read more..

SYNTHETIC LONG CALL Vs BULL CALL SPREAD - Details

	SYNTHETIC LONG CALL	BULL CALL SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid	Limited
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	Strike price of purchased call + net premium paid

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

	SYNTHETIC LONG CALL	BULL CALL SPREAD
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 an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Buy 1 ATM Put or OTM Put	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Underlying Price + Put Premium	Strike price of purchased call + net premium paid

SYNTHETIC LONG CALL Vs BULL CALL SPREAD - Risk & Reward

	SYNTHETIC LONG CALL	BULL CALL SPREAD
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	Premium Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	SYNTHETIC LONG CALL	BULL CALL SPREAD
Similar Strategies	Protective Put, Long Call	Collar
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.