SYNTHETIC LONG CALL	SHORT PUT LADDER
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 Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..

SYNTHETIC LONG CALL Vs SHORT PUT LADDER - Details

	SYNTHETIC LONG CALL	SHORT PUT LADDER
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
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	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

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

	SYNTHETIC LONG CALL	SHORT PUT LADDER
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 when a trader is slightly bearish on the market.
Action	Buy 1 ATM Put or OTM Put	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

SYNTHETIC LONG CALL Vs SHORT PUT LADDER - Risk & Reward

	SYNTHETIC LONG CALL	SHORT PUT LADDER
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received
Maximum Loss Scenario	Premium Paid	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

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

	SYNTHETIC LONG CALL	SHORT PUT LADDER
Similar Strategies	Protective Put, Long Call	Strap, Strip
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Best to use when you are confident about movement of market. • Small margin required.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.