LONG COMBO	LONG STRADDLE
About Strategy	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received Read more..	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

LONG COMBO Vs LONG STRADDLE - Details

	LONG COMBO	LONG STRADDLE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Call Strike + Net Premium	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

LONG COMBO Vs LONG STRADDLE - When & How to use ?

	LONG COMBO	LONG STRADDLE
Market View	Bullish	Neutral
When to use?	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell OTM Put Option, Buy OTM Call Option	Buy Call Option, Buy Put Option
Breakeven Point	Call Strike + Net Premium	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

LONG COMBO Vs LONG STRADDLE - Risk & Reward

	LONG COMBO	LONG STRADDLE
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Maximum Loss = Net Premium Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

LONG COMBO Vs LONG STRADDLE - Strategy Pros & Cons

	LONG COMBO	LONG STRADDLE
Similar Strategies	-	Bear Put Spread
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.