LONG COMBO	SHORT CALL
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 Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

LONG COMBO Vs SHORT CALL - Details

	LONG COMBO	SHORT CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Call Strike + Net Premium	Strike Price of Short Call + Premium Received

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

	LONG COMBO	SHORT CALL
Market View	Bullish	Bearish
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 is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Sell OTM Put Option, Buy OTM Call Option	Sell or Write Call Option
Breakeven Point	Call Strike + Net Premium	Strike Price of Short Call + Premium Received

LONG COMBO Vs SHORT CALL - Risk & Reward

	LONG COMBO	SHORT CALL
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Max Profit = Premium Received
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Unlimited	Unlimited
Reward	Unlimited	Limited

LONG COMBO Vs SHORT CALL - Strategy Pros & Cons

	LONG COMBO	SHORT CALL
Similar Strategies	-	Covered Put, Covered Calls
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
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.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.