LONG COMBO	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

LONG COMBO Vs STRAP - Details

	LONG COMBO	STRAP
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Unlimited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Call Strike + Net Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

LONG COMBO Vs STRAP - When & How to use ?

	LONG COMBO	STRAP
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 used when the investor is bullish on the stock and expects volatility in the near future.
Action	Sell OTM Put Option, Buy OTM Call Option	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Call Strike + Net Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

LONG COMBO Vs STRAP - Risk & Reward

	LONG COMBO	STRAP
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	UNLIMITED
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Net Premium Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

LONG COMBO Vs STRAP - Strategy Pros & Cons

	LONG COMBO	STRAP
Similar Strategies	-	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• To generate profit, there should be significant change in share price. • Expensive 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.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.