SYNTHETIC LONG CALL	SHORT PUT BUTTERFLY
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 Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< .. Read more..

SYNTHETIC LONG CALL Vs SHORT PUT BUTTERFLY - Details

	SYNTHETIC LONG CALL	SHORT PUT BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	4
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)	Limited
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

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

	SYNTHETIC LONG CALL	SHORT PUT BUTTERFLY
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.	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.
Action	Buy 1 ATM Put or OTM Put	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

SYNTHETIC LONG CALL Vs SHORT PUT BUTTERFLY - Risk & Reward

	SYNTHETIC LONG CALL	SHORT PUT BUTTERFLY
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs SHORT PUT BUTTERFLY - Strategy Pros & Cons

	SYNTHETIC LONG CALL	SHORT PUT BUTTERFLY
Similar Strategies	Protective Put, Long Call	Short Condor, Reverse Iron Condor
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.