BULL CALL SPREAD	SYNTHETIC LONG CALL
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. Read more..	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..

BULL CALL SPREAD Vs SYNTHETIC LONG CALL - Details

	BULL CALL SPREAD	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Limited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Strike price of purchased call + net premium paid	Underlying Price + Put Premium

BULL CALL SPREAD Vs SYNTHETIC LONG CALL - When & How to use ?

	BULL CALL SPREAD	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy ITM Call Option, Sell OTM Call Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Strike price of purchased call + net premium paid	Underlying Price + Put Premium

BULL CALL SPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	BULL CALL SPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BULL CALL SPREAD Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	BULL CALL SPREAD	SYNTHETIC LONG CALL
Similar Strategies	Collar	Protective Put, Long Call
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.