SHORT CALL	LONG COMBO
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 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 CALL Vs LONG COMBO - Details

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

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

	SHORT CALL	LONG COMBO
Market View	Bearish	Bullish
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 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	Sell or Write Call Option	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Strike Price of Short Call + Premium Received	Call Strike + Net Premium

SHORT CALL Vs LONG COMBO - Risk & Reward

	SHORT CALL	LONG COMBO
Maximum Profit Scenario	Max Profit = Premium Received	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Underlying asset goes down and Put option exercised
Risk	Unlimited	Unlimited
Reward	Limited	Unlimited

SHORT CALL Vs LONG COMBO - Strategy Pros & Cons

	SHORT CALL	LONG COMBO
Similar Strategies	Covered Put, Covered Calls	-
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
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.	• 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.