LONG COMBO	PROTECTIVE 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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

LONG COMBO Vs PROTECTIVE CALL - Details

	LONG COMBO	PROTECTIVE 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	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Call Strike + Net Premium	Sale Price of Underlying + Premium Paid

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

	LONG COMBO	PROTECTIVE 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.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell OTM Put Option, Buy OTM Call Option	Buy 1 ATM Call
Breakeven Point	Call Strike + Net Premium	Sale Price of Underlying + Premium Paid

LONG COMBO Vs PROTECTIVE CALL - Risk & Reward

	LONG COMBO	PROTECTIVE CALL
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

LONG COMBO Vs PROTECTIVE CALL - Strategy Pros & Cons

	LONG COMBO	PROTECTIVE CALL
Similar Strategies	-	Put Backspread, Long Put
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Profitable when market moves as expected. • Not good for beginners.
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.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.