LONG CALL	STRAP
About Strategy	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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

LONG CALL Vs STRAP - Details

	LONG CALL	STRAP
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginner Level	Beginners
Reward Profile	Unlimited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Strike Price + Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

LONG CALL Vs STRAP - When & How to use ?

	LONG CALL	STRAP
Market View	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.)	Neutral
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buying Call option	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Strike price + Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

LONG CALL Vs STRAP - Risk & Reward

	LONG CALL	STRAP
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	UNLIMITED
Maximum Loss Scenario	Premium Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG CALL Vs STRAP - Strategy Pros & Cons

	LONG CALL	STRAP
Similar Strategies	Protective Put	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• 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.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.