LONG CALL BUTTERFLY	LONG COMBO
About Strategy	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho 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 CALL BUTTERFLY Vs LONG COMBO - Details

	LONG CALL BUTTERFLY	LONG COMBO
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Call Strike + Net Premium

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

	LONG CALL BUTTERFLY	LONG COMBO
Market View	Neutral	Bullish
When to use?	This strategy should be used when you're expecting no volatility in the price of 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 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Call Strike + Net Premium

LONG CALL BUTTERFLY Vs LONG COMBO - Risk & Reward

	LONG CALL BUTTERFLY	LONG COMBO
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	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

LONG CALL BUTTERFLY Vs LONG COMBO - Strategy Pros & Cons

	LONG CALL BUTTERFLY	LONG COMBO
Similar Strategies	-	-
Disadvantage	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.	• 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.