BULL CALL SPREAD	LONG COMBO
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. 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..

BULL CALL SPREAD Vs LONG COMBO - Details

	BULL CALL SPREAD	LONG COMBO
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of purchased call + net premium paid	Call Strike + Net Premium

BULL CALL SPREAD Vs LONG COMBO - When & How to use ?

	BULL CALL SPREAD	LONG COMBO
Market View	Bullish	Bullish
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly 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 ITM Call Option, Sell OTM Call Option	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Strike price of purchased call + net premium paid	Call Strike + Net Premium

BULL CALL SPREAD Vs LONG COMBO - Risk & Reward

	BULL CALL SPREAD	LONG COMBO
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Net Premium Paid	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Limited	Unlimited

BULL CALL SPREAD Vs LONG COMBO - Strategy Pros & Cons

	BULL CALL SPREAD	LONG COMBO
Similar Strategies	Collar	-
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	• 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.