LONG COMBO	RATIO PUT SPREAD
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..	Ratio Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. Read more..

LONG COMBO Vs RATIO PUT SPREAD - Details

	LONG COMBO	RATIO PUT SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Call Strike + Net Premium	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

LONG COMBO Vs RATIO PUT SPREAD - When & How to use ?

	LONG COMBO	RATIO PUT SPREAD
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 strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Sell OTM Put Option, Buy OTM Call Option	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Call Strike + Net Premium	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

LONG COMBO Vs RATIO PUT SPREAD - Risk & Reward

	LONG COMBO	RATIO PUT SPREAD
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Unlimited	Unlimited
Reward	Unlimited	Limited

LONG COMBO Vs RATIO PUT SPREAD - Strategy Pros & Cons

	LONG COMBO	RATIO PUT SPREAD
Similar Strategies	-	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Unlimited potential risk. • Limited profit.
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.	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.