LONG STRADDLE	LONG CALL
About Strategy	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 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..

LONG STRADDLE Vs LONG CALL - Details

	LONG STRADDLE	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Strike Price + Premium

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

	LONG STRADDLE	LONG CALL
Market View	Neutral	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.)
When to use?	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.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buy Call Option, Buy Put Option	Buying Call option
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Strike price + Premium

LONG STRADDLE Vs LONG CALL - Risk & Reward

	LONG STRADDLE	LONG CALL
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG STRADDLE Vs LONG CALL - Strategy Pros & Cons

	LONG STRADDLE	LONG CALL
Similar Strategies	Bear Put Spread	Protective Put
Disadvantage	• 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.	• 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.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.