COVERED CALL	LONG CALL
About Strategy	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o 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..

COVERED CALL Vs LONG CALL - Details

	COVERED CALL	LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike Price + Premium

COVERED CALL Vs LONG CALL - When & How to use ?

	COVERED CALL	LONG CALL
Market View	Bullish	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?	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	(Buy Underlying) (Sell OTM Call Option)	Buying Call option
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike price + Premium

COVERED CALL Vs LONG CALL - Risk & Reward

	COVERED CALL	LONG CALL
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + Premium Received	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Purchase Price of Underlying - Price of Underlying) + Premium Received	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED CALL Vs LONG CALL - Strategy Pros & Cons

	COVERED CALL	LONG CALL
Similar Strategies	Bull Call Spread	Protective Put
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• 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	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.