LONG CALL BUTTERFLY	SYNTHETIC LONG CALL
About Strategy	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho 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..

LONG CALL BUTTERFLY Vs SYNTHETIC LONG CALL - Details

	LONG CALL BUTTERFLY	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	2
Strategy Level	Advance	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	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Underlying Price + Put Premium

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

	LONG CALL BUTTERFLY	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy 1 ATM Put or OTM Put
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Underlying Price + Put Premium

LONG CALL BUTTERFLY Vs SYNTHETIC LONG CALL - Risk & Reward

	LONG CALL BUTTERFLY	SYNTHETIC LONG CALL
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

LONG CALL BUTTERFLY Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	LONG CALL BUTTERFLY	SYNTHETIC LONG CALL
Similar Strategies	-	Protective Put, Long Call
Disadvantage	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.