CALL BACKSPREAD	LONG COMBO
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r 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..

CALL BACKSPREAD Vs LONG COMBO - Details

	CALL BACKSPREAD	LONG COMBO
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Call Strike + Net Premium

CALL BACKSPREAD Vs LONG COMBO - When & How to use ?

	CALL BACKSPREAD	LONG COMBO
Market View	Bullish	Bullish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	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 1 ITM Call, BUY 2 OTM Call	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Call Strike + Net Premium

CALL BACKSPREAD Vs LONG COMBO - Risk & Reward

	CALL BACKSPREAD	LONG COMBO
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

CALL BACKSPREAD Vs LONG COMBO - Strategy Pros & Cons

	CALL BACKSPREAD	LONG COMBO
Similar Strategies	-	-
Disadvantage		• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Unlimited profit potential.	• 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.