SYNTHETIC LONG CALL	SHORT STRADDLE
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 Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an .. Read more..

SYNTHETIC LONG CALL Vs SHORT STRADDLE - Details

	SYNTHETIC LONG CALL	SHORT STRADDLE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	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	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	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

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

	SYNTHETIC LONG CALL	SHORT STRADDLE
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 work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action	Buy 1 ATM Put or OTM Put	Sell Call Option, Sell Put Option
Breakeven Point	Underlying Price + Put Premium	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

SYNTHETIC LONG CALL Vs SHORT STRADDLE - Risk & Reward

	SYNTHETIC LONG CALL	SHORT STRADDLE
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs SHORT STRADDLE - Strategy Pros & Cons

	SYNTHETIC LONG CALL	SHORT STRADDLE
Similar Strategies	Protective Put, Long Call	Short Strangle
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .