RATIO PUT WRITE	SYNTHETIC LONG CALL
About Strategy	Ratio Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. 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..

RATIO PUT WRITE Vs SYNTHETIC LONG CALL - Details

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

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

	RATIO PUT WRITE	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell 2 ATM Puts	Buy 1 ATM Put or OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit	Underlying Price + Put Premium

RATIO PUT WRITE Vs SYNTHETIC LONG CALL - Risk & Reward

	RATIO PUT WRITE	SYNTHETIC LONG CALL
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO PUT WRITE Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	RATIO PUT WRITE	SYNTHETIC LONG CALL
Similar Strategies	Short Strangle and Short Straddle	Protective Put, Long Call
Disadvantage	• Potential loss is higher than gain. • Limited profit.	•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.