SYNTHETIC LONG CALL	LONG PUT 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 Put Butterfly Option Strategy  The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future. This strategy involves sale of 2 ATM Put Options, buy 1 ITM and 1 OTM Put Option. The risk and reward are limited. Read more..

SYNTHETIC LONG CALL Vs LONG PUT BUTTERFLY - Details

	SYNTHETIC LONG CALL	LONG PUT BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	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 Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid

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

	SYNTHETIC LONG CALL	LONG PUT 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.	The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future.
Action	Buy 1 ATM Put or OTM Put	Buy 1 OTM Put, Sell 2 ATM Puts, Buy 1 ITM Put
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid

SYNTHETIC LONG CALL Vs LONG PUT BUTTERFLY - Risk & Reward

	SYNTHETIC LONG CALL	LONG PUT BUTTERFLY
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Strike Price of Higher Strike Long Put - Strike Price of Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Premium Paid	When Price of Underlying <= Strike Price of Lower Strike Long Put OR Price of Underlying >= Strike Price of Higher Strike Long Put
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	SYNTHETIC LONG CALL	LONG PUT BUTTERFLY
Similar Strategies	Protective Put, Long Call	Iron Condors, Iron Butterfly
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Risk is higher than reward. • When the underlying price is in between the two breakeven points, time decay hurts the position.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Limited maximum loss. • Unlimited profit potential, risk only limited to loss of premium. • Benefits from low volatility.