PROTECTIVE CALL	SYNTHETIC LONG CALL
About Strategy	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. 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..

PROTECTIVE CALL Vs SYNTHETIC LONG CALL - Details

	PROTECTIVE CALL	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	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	Sale Price of Underlying + Premium Paid	Underlying Price + Put Premium

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

	PROTECTIVE CALL	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buy 1 ATM Call	Buy 1 ATM Put or OTM Put
Breakeven Point	Sale Price of Underlying + Premium Paid	Underlying Price + Put Premium

PROTECTIVE CALL Vs SYNTHETIC LONG CALL - Risk & Reward

	PROTECTIVE CALL	SYNTHETIC LONG CALL
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE CALL Vs SYNTHETIC LONG CALL - Strategy Pros & Cons

	PROTECTIVE CALL	SYNTHETIC LONG CALL
Similar Strategies	Put Backspread, Long Put	Protective Put, Long Call
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.