LONG STRANGLE	LONG CALL
About Strategy	Long Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the 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..

LONG STRANGLE Vs LONG CALL - Details

	LONG STRANGLE	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Strike Price + Premium

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

	LONG STRANGLE	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 in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buy OTM Call Option, Buy OTM Put Option	Buying Call option
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Strike price + Premium

LONG STRANGLE Vs LONG CALL - Risk & Reward

	LONG STRANGLE	LONG CALL
Maximum Profit Scenario	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Max Loss = Net Premium Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG STRANGLE Vs LONG CALL - Strategy Pros & Cons

	LONG STRANGLE	LONG CALL
Similar Strategies	Long Straddle, Short Strangle	Protective Put
Disadvantage	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.	• 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	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.