LONG COMBO	THE COLLAR
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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

LONG COMBO Vs THE COLLAR - Details

	LONG COMBO	THE COLLAR
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Call Strike + Net Premium	Price of Features - Call Premium + Put Premium

LONG COMBO Vs THE COLLAR - When & How to use ?

	LONG COMBO	THE COLLAR
Market View	Bullish	Bullish
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.	It should be used only in case where trader is certain about the bearish market view.
Action	Sell OTM Put Option, Buy OTM Call Option	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point	Call Strike + Net Premium	Price of Features - Call Premium + Put Premium

LONG COMBO Vs THE COLLAR - Risk & Reward

	LONG COMBO	THE COLLAR
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Unlimited	Limited
Reward	Unlimited	Limited

LONG COMBO Vs THE COLLAR - Strategy Pros & Cons

	LONG COMBO	THE COLLAR
Similar Strategies	-	Call Spread, Bull Put Spread
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
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.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.