When it comes to Options Trading, there are different complexities involved in terms of choosing a specific strategy that works the best for you.
At the same time, each strategy has its own set of advantages as well as limitations, thus making the concept of options trading even more challenging. Thus, in case you are looking to fit a particular strategy in your option trades, just check few areas before you make a choice.
In this detailed comparison of Long Call Vs Long Combo options trading strategies, we will be looking at the below-mentioned aspects and more:
- Current Market Position
- Your Risk Appetite
- Your Trading Experience
- Profit Potential
- Intention and Expectation of a trader
- Break-even point of your trade
Apart from the Long Call Vs Long Combo strategies, there are more than 25 comparisons of each of these strategies with other option strategies. With all these comparisons, you should be able to filter the ones that work the best for you.
Here is the detailed Long Call Vs Long Combo comparison:
| Comparison Aspect | Long Call | Long Combo |
| View |  |  |
| Strategy Introduction | In Long Call Strategy, the trader enters into a contract to buy a call option when he is bullish towards the market. The trader anticipates that the price of the security will go up in the future. However, he does not want to take the risk of buying the security outright...more | The long combo is used when the investor is bullish towards the market and is certain that the prices of the shares will go up...more |
| Investor Obligation | The trader has the right to buy a security at a future date at a predefined price. The term long itself means buying a security or buying an option. | The strategy expects low initial investment, however, the trader needs to pay the premium on the trades irrespective of the trade result. |
| Market Position | Bullish | Bullish |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call | Put, Call |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Call Option | Sell One OTM Put, Buy One OTM Call |
| Risk for You | Limited to Premium | Unlimited |
| Profit Potential | Unlimited | Unlimited |
| Break Even Point for Investor | Strike Price PLUS Premium | Call Strike + Net Premium |
| Investor Intention | Exercise Option if Profitable, Let it go otherwise | Low Upfront Investments, High ROI |
| Investor Expectation | Prices of Assets Go Up Sharply | Price of Stocks Go Up |
| Strategy Summary | Attractive | Complex |
| Advantages | Unlimited Profits, Limited Loss, Low Investment | Low Upfront Investment, Unlimited Profits |
| Disadvantages | Premium may eat up the Profits | Unlimited Loss, High Premium |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Call Vs Long Put | Long Combo Vs Short Put |
| Long Call Vs Long Combo | Long Combo Vs Long Put | |
| Long Call Vs Synthetic Call | Long Combo Vs Synthetic Call | |
| Long Call Vs Short Call | Long Combo Vs Short Call | |
| Long Call Vs Short Put | Long Combo Vs Long Call | |
| Long Call Vs Covered Call | Long Combo Vs Covered Call | |
| Long Call Vs Covered Put | Long Combo Vs Covered Put | |
| Long Call Vs Protective Call | Long Combo Vs Protective Call | |
| Long Call Vs Short Box | Long Combo Vs Short Box | |
| Long Call Vs Long Call Condor | Long Combo Vs Long Call Condor | |
| Long Call Vs Short Call Condor | Long Combo Vs Short Call Condor | |
| Long Call Vs Box Spread | Long Combo Vs Box Spread | |
| Long Call Vs Short Strangle | Long Combo Vs Short Strangle | |
| Long Call Vs Long Strangle | Long Combo Vs Long Strangle | |
| Long Call Vs Collar Strategy | Long Combo Vs Collar Strategy | |
| Long Call Vs Long Straddle | Long Combo Vs Long Straddle | |
| Long Call Vs Short Straddle | Long Combo Vs Short Straddle | |
| Long Call Vs Long Call Butterfly | Long Combo Vs Long Call Butterfly | |
| Long Call Vs Short Call Butterfly | Long Combo Vs Short Call Butterfly | |
| Long Call Vs Bear Call Spread | Long Combo Vs Bear Call Spread | |
| Long Call Vs Bear Put Spread | Long Combo Vs Bear Put Spread | |
| Long Call Vs Bull Call Spread | Long Combo Vs Bull Call Spread | |
| Long Call Vs Bull Put Spread | Long Combo Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Call Vs Long Combo option strategies.
As mentioned above, if you are in a Bullish market situation and want to make unlimited profits on your trades, then Long Call is one of the options trading strategies you can opt for. The risk involved in this strategy is more than limited and thus, the strategy can only work for higher profits if you have the experience to run similar strategies in the past.
However, if you are looking to put minimal initial investment and are open for unlimited profits as well as risks, then Long Combo options strategy can work wonders for you.
Furthermore, as said above, it also depends on the market situation.
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