LONG COMBO	SHORT STRADDLE
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..	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an .. Read more..

LONG COMBO Vs SHORT STRADDLE - Details

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

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

	LONG COMBO	SHORT STRADDLE
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 work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action	Sell OTM Put Option, Buy OTM Call Option	Sell Call Option, Sell Put Option
Breakeven Point	Call Strike + Net Premium	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

LONG COMBO Vs SHORT STRADDLE - Risk & Reward

	LONG COMBO	SHORT STRADDLE
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Unlimited	Unlimited
Reward	Unlimited	Limited

LONG COMBO Vs SHORT STRADDLE - Strategy Pros & Cons

	LONG COMBO	SHORT STRADDLE
Similar Strategies	-	Short Strangle
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
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.	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .