SYNTHETIC LONG CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
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..	Christmas Tree Spread with Call Option Strategy This Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one call at strike price A, skipping strike price B, writes three calls at strike price C, and buying two calls at strike price D for same expiration dates for neutral to bullish forecast. An investor used this strategy to potential retur .. Read more..

SYNTHETIC LONG CALL Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

	SYNTHETIC LONG CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
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	Lowest strike prices + premium paid – the half premium.

SYNTHETIC LONG CALL Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - When & How to use ?

	SYNTHETIC LONG CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
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 wants potential returns.
Action	Buy 1 ATM Put or OTM Put	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Underlying Price + Put Premium	Lowest strike prices + premium paid – the half premium.

SYNTHETIC LONG CALL Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Risk & Reward

	SYNTHETIC LONG CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario	Premium Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Strategy Pros & Cons

	SYNTHETIC LONG CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Protective Put, Long Call	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Potential profit is lower or limited.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• The potential of loss is limited.