SYNTHETIC LONG CALL	LONG CALL 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..	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

SYNTHETIC LONG CALL Vs LONG CALL BUTTERFLY - Details

	SYNTHETIC LONG CALL	LONG CALL BUTTERFLY
Market View	Bullish	Neutral
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	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	SYNTHETIC LONG CALL	LONG CALL 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 should be used when you're expecting no volatility in the price of the underlying.
Action	Buy 1 ATM Put or OTM Put	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

SYNTHETIC LONG CALL Vs LONG CALL BUTTERFLY - Risk & Reward

	SYNTHETIC LONG CALL	LONG CALL BUTTERFLY
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Premium Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs LONG CALL BUTTERFLY - Strategy Pros & Cons

	SYNTHETIC LONG CALL	LONG CALL BUTTERFLY
Similar Strategies	Protective Put, Long Call	-
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.