PUT BACKSPREAD	SYNTHETIC LONG CALL
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. 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..

PUT BACKSPREAD Vs SYNTHETIC LONG CALL - Details

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

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

	PUT BACKSPREAD	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
When to use?		A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action		Buy 1 ATM Put or OTM Put
Breakeven Point		Underlying Price + Put Premium

PUT BACKSPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	PUT BACKSPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario		Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario		Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PUT BACKSPREAD Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	PUT BACKSPREAD	SYNTHETIC LONG CALL
Similar Strategies		Protective Put, Long Call
Disadvantage		•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages		•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.