LONG STRADDLE	SHORT CALL
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc Read more..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

LONG STRADDLE Vs SHORT CALL - Details

	LONG STRADDLE	SHORT CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Strike Price of Short Call + Premium Received

LONG STRADDLE Vs SHORT CALL - When & How to use ?

	LONG STRADDLE	SHORT CALL
Market View	Neutral	Bearish
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Buy Call Option, Buy Put Option	Sell or Write Call Option
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Strike Price of Short Call + Premium Received

LONG STRADDLE Vs SHORT CALL - Risk & Reward

	LONG STRADDLE	SHORT CALL
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Max Profit = Premium Received
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

LONG STRADDLE Vs SHORT CALL - Strategy Pros & Cons

	LONG STRADDLE	SHORT CALL
Similar Strategies	Bear Put Spread	Covered Put, Covered Calls
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.