COVERED CALL	SYNTHETIC LONG CALL
About Strategy	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o 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..

COVERED CALL Vs SYNTHETIC LONG CALL - Details

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

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

	COVERED CALL	SYNTHETIC LONG CALL
Market View	Bullish	Bullish
When to use?	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	(Buy Underlying) (Sell OTM Call Option)	Buy 1 ATM Put or OTM Put
Breakeven Point	Purchase Price of Underlying- Premium Received	Underlying Price + Put Premium

COVERED CALL Vs SYNTHETIC LONG CALL - Risk & Reward

	COVERED CALL	SYNTHETIC LONG CALL
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + Premium Received	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Purchase Price of Underlying - Price of Underlying) + Premium Received	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED CALL Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	COVERED CALL	SYNTHETIC LONG CALL
Similar Strategies	Bull Call Spread	Protective Put, Long Call
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.