LONG PUT	LONG COMBO
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	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..

LONG PUT Vs LONG COMBO - Details

	LONG PUT	LONG COMBO
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price of Long Put - Premium Paid	Call Strike + Net Premium

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

	LONG PUT	LONG COMBO
Market View	Bearish	Bullish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	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.
Action	Buy Put Option	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Strike Price of Long Put - Premium Paid	Call Strike + Net Premium

LONG PUT Vs LONG COMBO - Risk & Reward

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

LONG PUT Vs LONG COMBO - Strategy Pros & Cons

	LONG PUT	LONG COMBO
Similar Strategies	Protective Call, Short Put	-
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• 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.