LONG COMBO	PUT BACKSPREAD
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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

LONG COMBO Vs PUT BACKSPREAD - Details

	LONG COMBO	PUT BACKSPREAD
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited
Risk Profile	Unlimited
Breakeven Point	Call Strike + Net Premium

LONG COMBO Vs PUT BACKSPREAD - When & How to use ?

	LONG COMBO	PUT BACKSPREAD
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.
Action	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Call Strike + Net Premium

LONG COMBO Vs PUT BACKSPREAD - Risk & Reward

	LONG COMBO	PUT BACKSPREAD
Maximum Profit Scenario	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Underlying asset goes down and Put option exercised
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

LONG COMBO Vs PUT BACKSPREAD - Strategy Pros & Cons

	LONG COMBO	PUT BACKSPREAD
Similar Strategies	-
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
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.