LONG STRANGLE	SYNTHETIC LONG CALL
About Strategy	Long Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the 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 STRANGLE Vs SYNTHETIC LONG CALL - Details

	LONG STRANGLE	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	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	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Underlying Price + Put Premium

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

	LONG STRANGLE	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy OTM Call Option, Buy OTM Put Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Underlying Price + Put Premium

LONG STRANGLE Vs SYNTHETIC LONG CALL - Risk & Reward

	LONG STRANGLE	SYNTHETIC LONG CALL
Maximum Profit Scenario	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG STRANGLE Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	LONG STRANGLE	SYNTHETIC LONG CALL
Similar Strategies	Long Straddle, Short Strangle	Protective Put, Long Call
Disadvantage	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.