SYNTHETIC LONG CALL	LONG STRADDLE
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 Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

SYNTHETIC LONG CALL Vs LONG STRADDLE - Details

	SYNTHETIC LONG CALL	LONG STRADDLE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
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	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

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

	SYNTHETIC LONG CALL	LONG STRADDLE
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 options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buy 1 ATM Put or OTM Put	Buy Call Option, Buy Put Option
Breakeven Point	Underlying Price + Put Premium	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

SYNTHETIC LONG CALL Vs LONG STRADDLE - Risk & Reward

	SYNTHETIC LONG CALL	LONG STRADDLE
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	Premium Paid	Maximum Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs LONG STRADDLE - Strategy Pros & Cons

	SYNTHETIC LONG CALL	LONG STRADDLE
Similar Strategies	Protective Put, Long Call	Bear Put Spread
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.