SYNTHETIC LONG CALL	PROTECTIVE 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..	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. Read more..

SYNTHETIC LONG CALL Vs PROTECTIVE PUT - Details

	SYNTHETIC LONG CALL	PROTECTIVE PUT
Market View	Bullish	Bullish
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	Purchase Price of Underlying + Premium Paid

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

	SYNTHETIC LONG CALL	PROTECTIVE PUT
Market View	Bullish	Bullish
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 adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Buy 1 ATM Put or OTM Put	Buy 1 ATM Put
Breakeven Point	Underlying Price + Put Premium	Purchase Price of Underlying + Premium Paid

SYNTHETIC LONG CALL Vs PROTECTIVE PUT - Risk & Reward

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

SYNTHETIC LONG CALL Vs PROTECTIVE PUT - Strategy Pros & Cons

	SYNTHETIC LONG CALL	PROTECTIVE PUT
Similar Strategies	Protective Put, Long Call	Long Call, Call Backspread
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.