SHORT PUT	LONG COMBO
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..	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..

SHORT PUT Vs LONG COMBO - Details

	SHORT PUT	LONG COMBO
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Strike Price - Premium	Call Strike + Net Premium

SHORT PUT Vs LONG COMBO - When & How to use ?

	SHORT PUT	LONG COMBO
Market View	Bullish	Bullish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	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.
Action	Sell Put Option	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Strike Price - Premium	Call Strike + Net Premium

SHORT PUT Vs LONG COMBO - Risk & Reward

	SHORT PUT	LONG COMBO
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Underlying asset goes down and Put option exercised
Risk	Unlimited	Unlimited
Reward	Limited	Unlimited

SHORT PUT Vs LONG COMBO - Strategy Pros & Cons

	SHORT PUT	LONG COMBO
Similar Strategies	Bull Put Spread, Short Starddle	-
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• 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.