LONG COMBO	SHORT STRANGLE
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 Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

LONG COMBO Vs SHORT STRANGLE - Details

	LONG COMBO	SHORT STRANGLE
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 Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

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

	LONG COMBO	SHORT STRANGLE
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 perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Sell OTM Put Option, Buy OTM Call Option	Sell OTM Call, Sell OTM Put
Breakeven Point	Call Strike + Net Premium	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

LONG COMBO Vs SHORT STRANGLE - Risk & Reward

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

LONG COMBO Vs SHORT STRANGLE - Strategy Pros & Cons

	LONG COMBO	SHORT STRANGLE
Similar Strategies	-	Short Straddle, Long Strangle
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.