LONG COMBO	SHORT PUT LADDER
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 Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..

LONG COMBO Vs SHORT PUT LADDER - Details

	LONG COMBO	SHORT PUT LADDER
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Call Strike + Net Premium	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

LONG COMBO Vs SHORT PUT LADDER - When & How to use ?

	LONG COMBO	SHORT PUT LADDER
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 implemented when a trader is slightly bearish on the market.
Action	Sell OTM Put Option, Buy OTM Call Option	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	Call Strike + Net Premium	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

LONG COMBO Vs SHORT PUT LADDER - Risk & Reward

	LONG COMBO	SHORT PUT LADDER
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

LONG COMBO Vs SHORT PUT LADDER - Strategy Pros & Cons

	LONG COMBO	SHORT PUT LADDER
Similar Strategies	-	Strap, Strip
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Best to use when you are confident about movement of market. • Small margin required.
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.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.