COVERED COMBINATION	COVERED COMBINATION
About Strategy	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un Read more..	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un .. Read more..

COVERED COMBINATION Vs COVERED COMBINATION - Details

	COVERED COMBINATION	COVERED COMBINATION
Market View	Bullish	Bullish
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	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

COVERED COMBINATION Vs COVERED COMBINATION - When & How to use ?

	COVERED COMBINATION	COVERED COMBINATION
Market View	Bullish	Bullish
When to use?	This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.	This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.
Action	Sell 1 OTM Call, Sell 1 OTM Put	Sell 1 OTM Call, Sell 1 OTM Put
Breakeven Point	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

COVERED COMBINATION Vs COVERED COMBINATION - Risk & Reward

	COVERED COMBINATION	COVERED COMBINATION
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid
Risk	Unlimited	Unlimited
Reward	Limited	Limited

COVERED COMBINATION Vs COVERED COMBINATION - Strategy Pros & Cons

	COVERED COMBINATION	COVERED COMBINATION
Similar Strategies	Stock Repair Strategy	Stock Repair Strategy
Disadvantage	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.
Advantages	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.