SYNTHETIC LONG CALL	NEUTRAL CALENDAR SPREAD
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..	Neutral Calendar Spread Option strategy  This strategy is implemented if the trader is neutral in the near future for say 2 months or so. This strategy involves writing of Near Month 1 ATM Call Option and buying 1 Mid Month ATM Call Option, hence reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when the trader wants to make money from the .. Read more..

SYNTHETIC LONG CALL Vs NEUTRAL CALENDAR SPREAD - Details

	SYNTHETIC LONG CALL	NEUTRAL CALENDAR SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
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	-

SYNTHETIC LONG CALL Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	SYNTHETIC LONG CALL	NEUTRAL CALENDAR SPREAD
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 if the trader is neutral in the near future for say 2 months or so. This strategy involves writing of Near Month 1 ATM Call Option and buying 1 Mid Month ATM Call Option.
Action	Buy 1 ATM Put or OTM Put	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Underlying Price + Put Premium	-

SYNTHETIC LONG CALL Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	SYNTHETIC LONG CALL	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Premium Paid	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Limited	Limited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	SYNTHETIC LONG CALL	NEUTRAL CALENDAR SPREAD
Similar Strategies	Protective Put, Long Call	Long Put Butterfly, Iron Butterfly
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Lower profitability • Must have enough experience.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.