When it comes to Options Trading, there are different complexities involved in terms of choosing a specific strategy that works the best for you.
At the same time, each strategy has its own set of advantages as well as limitations, thus making the concept of options trading even more challenging. Thus, in case you are looking to fit a particular strategy in your option trades, just check few areas before you make a choice.
In this detailed comparison of Bull Put Spread Vs Synthetic Call options trading strategies, we will be looking at the below-mentioned aspects and more:
- Current Market Position
- Your Risk Appetite
- Your Trading Experience
- Profit Potential
- Intention and Expectation of a trader
- Break-even point of your trade
Apart from the Bull Put Spread Vs Synthetic Call strategies, there are more than 25 comparisons of each of these strategies with other option strategies. With all these comparisons, you should be able to filter the ones that work the best for you.
Here is the detailed Bull Put Spread Vs Synthetic Call comparison:
| Comparison Aspect | Bull Put Spread | Synthetic Call |
| View |  |  |
| Strategy Introduction | Bull Put Spread comes into play when the trader is expecting the market is going up gradually, but moderately. So, this is also suitable for a moderately bullish forecast, just like the bull call option...more | Synthetic Call is an options strategy in which an underlying asset is combined with a put option to protect against depreciation in the value of the underlying asset. The overall effect is similar to...more |
| Investor Obligation | Bull put spread is more ideal if the there is very high volatility in the market, time to expiration date is more and the market has declined considerably. | Stay with the position |
| Market Position | Moderately Bullish | Bullish |
| Strategy Level Suitable for | Intermediates | Beginners |
| Options Traded | Put | Put |
| Number of Positions | 2 | 2 (Underlying + Put) |
| Action Needed | Buy OTM Put, Sell ITM Put | Holds a long position in an underlying asset and a put option on the same stock |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Strike price of short put MINUS net premium paid | Underlying Price + Put Premium |
| Investor Intention | Let Options Expire Worthlessly | Save Transaction Costs, Stay Protected from downward market movement. |
| Investor Expectation | Market Prices to Go Up | Prices of the Assets to Go Up |
| Strategy Summary | Limited Risk, Limited Gains | Profitable |
| Advantages | Limited Risk | Dividends on Stocks, Limited Risk, Unlimited Profit |
| Disadvantages | Limited Profit | Chances of loss if the underlying goes down |
| Market Scenarios - Profit | 3 | 1 |
| Market Scenarios - Loss | 2 | 1 |
| Also called as | NA | NA |
| More Comparisons | Bull Put Spread Vs Short Put | Synthetic Call Vs Short Put |
| Bull Put Spread Vs Long Combo | Synthetic Call Vs Long Combo | |
| Bull Put Spread Vs Synthetic Call | Synthetic Call Vs Short Call | |
| Bull Put Spread Vs Long Put | Synthetic Call Vs Long Put | |
| Bull Put Spread Vs Long Call | Synthetic Call Vs Long Call | |
| Bull Put Spread Vs Covered Call | Synthetic Call Vs Covered Call | |
| Bull Put Spread Vs Covered Put | Synthetic Call Vs Covered Put | |
| Bull Put Spread Vs Protective Call | Synthetic Call Vs Protective Call | |
| Bull Put Spread Vs Short Box | Synthetic Call Vs Short Box | |
| Bull Put Spread Vs Long Call Condor | Synthetic Call Vs Long Call Condor | |
| Bull Put Spread Vs Short Call Condor | Synthetic Call Vs Short Call Condor | |
| Bull Put Spread Vs Box Spread | Synthetic Call Vs Box Spread | |
| Bull Put Spread Vs Short Strangle | Synthetic Call Vs Short Strangle | |
| Bull Put Spread Vs Long Strangle | Synthetic Call Vs Long Strangle | |
| Bull Put Spread Vs Collar Strategy | Synthetic Call Vs Collar Strategy | |
| Bull Put Spread Vs Long Straddle | Synthetic Call Vs Long Straddle | |
| Bull Put Spread Vs Short Straddle | Synthetic Call Vs Short Straddle | |
| Bull Put Spread Vs Long Call Butterfly | Synthetic Call Vs Long Call Butterfly | |
| Bull Put Spread Vs Short Call Butterfly | Synthetic Call Vs Short Call Butterfly | |
| Bull Put Spread Vs Bear Call Spread | Synthetic Call Vs Bear Call Spread | |
| Bull Put Spread Vs Bear Put Spread | Synthetic Call Vs Bear Put Spread | |
| Bull Put Spread Vs Bull Call Spread | Synthetic Call Vs Bull Call Spread | |
| Bull Put Spread Vs Short Call | Synthetic Call Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Bull Put Spread Vs Synthetic Call option strategies.
At the same time, if you are in a moderately bullish forecast situation and want to take a limited risk, then Bull Put Spread is one of the options trading strategies you can look out for.
The profit you get using this strategy is also limited in scope.
If you are looking at a bearish market momentum and are open towards a limited risk with a potential of unlimited profits, then Synthetic Call options strategy is definitely a positive go for you.
Be aware of all the related aspects (like the ones listed above) and then make a choice for yourself.
Furthermore, as told above, it also depends on the market situation.
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