STRAP	LONG CALL
About Strategy	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin Read more..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

STRAP Vs LONG CALL - Details

	STRAP	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid	Unlimited
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price + Premium

STRAP Vs LONG CALL - When & How to use ?

	STRAP	LONG CALL
Market View	Neutral	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Buying Call option
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike price + Premium

STRAP Vs LONG CALL - Risk & Reward

	STRAP	LONG CALL
Maximum Profit Scenario	UNLIMITED	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRAP Vs LONG CALL - Strategy Pros & Cons

	STRAP	LONG CALL
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Protective Put
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.