SYNTHETIC LONG CALL	SHORT CALL
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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

SYNTHETIC LONG CALL Vs SHORT CALL - Details

	SYNTHETIC LONG CALL	SHORT CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Advance
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)	Unlimited
Breakeven Point	Underlying Price + Put Premium	Strike Price of Short Call + Premium Received

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

	SYNTHETIC LONG CALL	SHORT CALL
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.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Buy 1 ATM Put or OTM Put	Sell or Write Call Option
Breakeven Point	Underlying Price + Put Premium	Strike Price of Short Call + Premium Received

SYNTHETIC LONG CALL Vs SHORT CALL - Risk & Reward

	SYNTHETIC LONG CALL	SHORT CALL
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Max Profit = Premium Received
Maximum Loss Scenario	Premium Paid	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs SHORT CALL - Strategy Pros & Cons

	SYNTHETIC LONG CALL	SHORT CALL
Similar Strategies	Protective Put, Long Call	Covered Put, Covered Calls
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.