SYNTHETIC LONG CALL	IRON BUTTERFLY
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..	Iron Butterfly Option Strategy  This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements. A trader will buy 1 OTM Put Option, sell 1 ATM Put Option, sell 1 ATM Call Option, buy 1 OTM Call Option. Due to offsetting of long and short positions, this strategy bags limited profit with limited risk. Read more..

SYNTHETIC LONG CALL Vs IRON BUTTERFLY - Details

	SYNTHETIC LONG CALL	IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put 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	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

SYNTHETIC LONG CALL Vs IRON BUTTERFLY - When & How to use ?

	SYNTHETIC LONG CALL	IRON BUTTERFLY
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.	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Buy 1 ATM Put or OTM Put	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

SYNTHETIC LONG CALL Vs IRON BUTTERFLY - Risk & Reward

	SYNTHETIC LONG CALL	IRON BUTTERFLY
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs IRON BUTTERFLY - Strategy Pros & Cons

	SYNTHETIC LONG CALL	IRON BUTTERFLY
Similar Strategies	Protective Put, Long Call	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Large commissions involved. • Probability of losses are higher.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Less amount of capital investment, steady income with low risk. • Traders can predict maximum loss and profit. • Versatile strategy, investors can transform position into bear call spread or bull put spread easily.