SHORT CALL	LONG STRADDLE
About Strategy	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 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 Vs LONG STRADDLE - Details

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

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

	SHORT CALL	LONG STRADDLE
Market View	Bearish	Neutral
When to use?	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.	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.
Action	Sell or Write Call Option	Buy Call Option, Buy Put Option
Breakeven Point	Strike Price of Short Call + Premium Received	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

SHORT CALL Vs LONG STRADDLE - Risk & Reward

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

SHORT CALL Vs LONG STRADDLE - Strategy Pros & Cons

	SHORT CALL	LONG STRADDLE
Similar Strategies	Covered Put, Covered Calls	Bear Put Spread
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• 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.
Advantages	• 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.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.