LONG COMBO	SHORT PUT
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..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

LONG COMBO Vs SHORT PUT - Details

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

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

	LONG COMBO	SHORT PUT
Market View	Bullish	Bullish
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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell OTM Put Option, Buy OTM Call Option	Sell Put Option
Breakeven Point	Call Strike + Net Premium	Strike Price - Premium

LONG COMBO Vs SHORT PUT - Risk & Reward

	LONG COMBO	SHORT PUT
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Unlimited
Reward	Unlimited	Limited

LONG COMBO Vs SHORT PUT - Strategy Pros & Cons

	LONG COMBO	SHORT PUT
Similar Strategies	-	Bull Put Spread, Short Starddle
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
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.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.