PROTECTIVE CALL	LONG COMBO
About Strategy	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The 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..

PROTECTIVE CALL Vs LONG COMBO - Details

	PROTECTIVE CALL	LONG COMBO
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Sale Price of Underlying + Premium Paid	Call Strike + Net Premium

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

	PROTECTIVE CALL	LONG COMBO
Market View	Bearish	Bullish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	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 1 ATM Call	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Call Strike + Net Premium

PROTECTIVE CALL Vs LONG COMBO - Risk & Reward

	PROTECTIVE CALL	LONG COMBO
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

PROTECTIVE CALL Vs LONG COMBO - Strategy Pros & Cons

	PROTECTIVE CALL	LONG COMBO
Similar Strategies	Put Backspread, Long Put	-
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.	• 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.