STRAP	LONG COMBO
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 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..

STRAP Vs LONG COMBO - Details

	STRAP	LONG COMBO
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Beginners	Advance
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	Unlimited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Call Strike + Net Premium

STRAP Vs LONG COMBO - When & How to use ?

	STRAP	LONG COMBO
Market View	Neutral	Bullish
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the 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 2 ATM Call Option, Buy 1 ATM Put Option	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Call Strike + Net Premium

STRAP Vs LONG COMBO - Risk & Reward

	STRAP	LONG COMBO
Maximum Profit Scenario	UNLIMITED	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	Unlimited	Unlimited

STRAP Vs LONG COMBO - Strategy Pros & Cons

	STRAP	LONG COMBO
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	-
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
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.	• 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.