SYNTHETIC LONG CALL	LONG PUT
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 Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

SYNTHETIC LONG CALL Vs LONG PUT - Details

	SYNTHETIC LONG CALL	LONG PUT
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid	Unlimited
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 Long Put - Premium Paid

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

	SYNTHETIC LONG CALL	LONG PUT
Market View	Bullish	Bearish
When to use?	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy 1 ATM Put or OTM Put	Buy Put Option
Breakeven Point	Underlying Price + Put Premium	Strike Price of Long Put - Premium Paid

SYNTHETIC LONG CALL Vs LONG PUT - Risk & Reward

	SYNTHETIC LONG CALL	LONG PUT
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Premium Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs LONG PUT - Strategy Pros & Cons

	SYNTHETIC LONG CALL	LONG PUT
Similar Strategies	Protective Put, Long Call	Protective Call, Short Put
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.