SYNTHETIC LONG CALL	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

SYNTHETIC LONG CALL Vs STRAP - Details

	SYNTHETIC LONG CALL	STRAP
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Beginners	Beginners
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Underlying Price + Put Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

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

	SYNTHETIC LONG CALL	STRAP
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 used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy 1 ATM Put or OTM Put	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Underlying Price + Put Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

SYNTHETIC LONG CALL Vs STRAP - Risk & Reward

	SYNTHETIC LONG CALL	STRAP
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	UNLIMITED
Maximum Loss Scenario	Premium Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SYNTHETIC LONG CALL Vs STRAP - Strategy Pros & Cons

	SYNTHETIC LONG CALL	STRAP
Similar Strategies	Protective Put, Long Call	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.