THE COLLAR	LONG COMBO
About Strategy	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 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 Vs LONG COMBO - Details

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

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

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

THE COLLAR Vs LONG COMBO - Risk & Reward

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

THE COLLAR Vs LONG COMBO - Strategy Pros & Cons

	THE COLLAR	LONG COMBO
Similar Strategies	Call Spread, Bull Put Spread	-
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• 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.	• 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.