SYNTHETIC LONG CALL	PUT BACKSPREAD
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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

SYNTHETIC LONG CALL Vs PUT BACKSPREAD - Details

	SYNTHETIC LONG CALL	PUT BACKSPREAD
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Underlying Price + Put Premium

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

	SYNTHETIC LONG CALL	PUT BACKSPREAD
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.
Action	Buy 1 ATM Put or OTM Put
Breakeven Point	Underlying Price + Put Premium

SYNTHETIC LONG CALL Vs PUT BACKSPREAD - Risk & Reward

	SYNTHETIC LONG CALL	PUT BACKSPREAD
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs PUT BACKSPREAD - Strategy Pros & Cons

	SYNTHETIC LONG CALL	PUT BACKSPREAD
Similar Strategies	Protective Put, Long Call
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.