LONG GUTS	LONG COMBO
About Strategy	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< 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 GUTS Vs LONG COMBO - Details

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

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

	LONG GUTS	LONG COMBO
Market View	Neutral	Bullish
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.	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 1 ITM Call, Buy 1 ITM Put	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Call Strike + Net Premium

LONG GUTS Vs LONG COMBO - Risk & Reward

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

LONG GUTS Vs LONG COMBO - Strategy Pros & Cons

	LONG GUTS	LONG COMBO
Similar Strategies	Short Put Ladder, Strip, Strap	-
Disadvantage	• More commission involved than simply buying call or put option. • Expensive.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.	• 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.