COVERED PUT	LONG CALL
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the 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..

COVERED PUT Vs LONG CALL - Details

	COVERED PUT	LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option) + Underlying	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Futures Price + Premium Received	Strike Price + Premium

COVERED PUT Vs LONG CALL - When & How to use ?

	COVERED PUT	LONG CALL
Market View	Bearish	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?	The Covered Put works well when the market is moderately Bearish.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Sell Underlying Sell OTM Put Option	Buying Call option
Breakeven Point	Futures Price + Premium Received	Strike price + Premium

COVERED PUT Vs LONG CALL - Risk & Reward

	COVERED PUT	LONG CALL
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED PUT Vs LONG CALL - Strategy Pros & Cons

	COVERED PUT	LONG CALL
Similar Strategies	Bear Put Spread, Bear Call Spread	Protective Put
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• 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	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.