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 Long Combo 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 Long Combo 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 Long Combo Vs Synthetic Call comparison:
| Comparison Aspect | Long Combo | Synthetic Call |
| View |  |  |
| Strategy Introduction | The long combo is used when the investor is bullish towards the market and is certain that the prices of the shares will go up...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 | The strategy expects low initial investment, however, the trader needs to pay the premium on the trades irrespective of the trade result. | Stay with the position |
| Market Position | Bullish | Bullish |
| Strategy Level Suitable for | Intermediates | Beginners |
| Options Traded | Put, Call | Put |
| Number of Positions | 2 | 2 (Underlying + Put) |
| Action Needed | Sell One OTM Put, Buy One OTM Call | Holds a long position in an underlying asset and a put option on the same stock |
| Risk for You | Unlimited | Limited |
| Profit Potential | Unlimited | Unlimited |
| Break Even Point for Investor | Call Strike + Net Premium | Underlying Price + Put Premium |
| Investor Intention | Low Upfront Investments, High ROI | Save Transaction Costs, Stay Protected from downward market movement. |
| Investor Expectation | Price of Stocks Go Up | Prices of the Assets to Go Up |
| Strategy Summary | Complex | Profitable |
| Advantages | Low Upfront Investment, Unlimited Profits | Dividends on Stocks, Limited Risk, Unlimited Profit |
| Disadvantages | Unlimited Loss, High Premium | Chances of loss if the underlying goes down |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Combo Vs Short Put | Synthetic Call Vs Short Put |
| Long Combo Vs Long Put | Synthetic Call Vs Long Combo | |
| Long Combo Vs Synthetic Call | Synthetic Call Vs Short Call | |
| Long Combo Vs Short Call | Synthetic Call Vs Long Put | |
| Long Combo Vs Long Call | Synthetic Call Vs Long Call | |
| Long Combo Vs Covered Call | Synthetic Call Vs Covered Call | |
| Long Combo Vs Covered Put | Synthetic Call Vs Covered Put | |
| Long Combo Vs Protective Call | Synthetic Call Vs Protective Call | |
| Long Combo Vs Short Box | Synthetic Call Vs Short Box | |
| Long Combo Vs Long Call Condor | Synthetic Call Vs Long Call Condor | |
| Long Combo Vs Short Call Condor | Synthetic Call Vs Short Call Condor | |
| Long Combo Vs Box Spread | Synthetic Call Vs Box Spread | |
| Long Combo Vs Short Strangle | Synthetic Call Vs Short Strangle | |
| Long Combo Vs Long Strangle | Synthetic Call Vs Long Strangle | |
| Long Combo Vs Collar Strategy | Synthetic Call Vs Collar Strategy | |
| Long Combo Vs Long Straddle | Synthetic Call Vs Long Straddle | |
| Long Combo Vs Short Straddle | Synthetic Call Vs Short Straddle | |
| Long Combo Vs Long Call Butterfly | Synthetic Call Vs Long Call Butterfly | |
| Long Combo Vs Short Call Butterfly | Synthetic Call Vs Short Call Butterfly | |
| Long Combo Vs Bear Call Spread | Synthetic Call Vs Bear Call Spread | |
| Long Combo Vs Bear Put Spread | Synthetic Call Vs Bear Put Spread | |
| Long Combo Vs Bull Call Spread | Synthetic Call Vs Bull Call Spread | |
| Long Combo Vs Bull Put Spread | Synthetic Call Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Combo Vs Synthetic Call option strategies.
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.
At the same time, If you are looking to put minimal initial investment and are open for unlimited profits as well as risks, then Long Combo options strategy can work wonders for you.
Be aware of all the related aspects (like the ones listed above) and then make a choice for yourself.
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