STRAP	SYNTHETIC LONG CALL
About Strategy	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin 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..

STRAP Vs SYNTHETIC LONG CALL - Details

	STRAP	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Beginners	Beginners
Reward Profile	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Underlying Price + Put Premium

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

	STRAP	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
When to use?	This strategy is used when the investor is bullish on the stock and expects 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	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Buy 1 ATM Put or OTM Put
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Underlying Price + Put Premium

STRAP Vs SYNTHETIC LONG CALL - Risk & Reward

	STRAP	SYNTHETIC LONG CALL
Maximum Profit Scenario	UNLIMITED	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRAP Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	STRAP	SYNTHETIC LONG CALL
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Protective Put, Long Call
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.