SHORT STRANGLE	LONG CALL
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if Read more..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

SHORT STRANGLE Vs LONG CALL - Details

	SHORT STRANGLE	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike Price + Premium

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

	SHORT STRANGLE	LONG CALL
Market View	Neutral	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Sell OTM Call, Sell OTM Put	Buying Call option
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike price + Premium

SHORT STRANGLE Vs LONG CALL - Risk & Reward

	SHORT STRANGLE	LONG CALL
Maximum Profit Scenario	Maximum Profit = Net Premium Received	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRANGLE Vs LONG CALL - Strategy Pros & Cons

	SHORT STRANGLE	LONG CALL
Similar Strategies	Short Straddle, Long Strangle	Protective Put
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.