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 Short 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 Short 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 Short Call Vs Long Combo comparison:
| Comparison Aspect | Short Call | Long Combo |
| View |  |  |
| Strategy Introduction | Short Call is used when the trader expects that the price of the underlying asset will go down sharply, he shorts a call. If the price of the asset goes down, the strategy generates profit. However, if the price...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 obligation to buy the stock at the predetermined price at the time of expiration. | The strategy expects low initial investment, however, the trader needs to pay the premium on the trades irrespective of the trade result. |
| Market Position | Bearish | Bullish |
| Strategy Level Suitable for | Experts | Intermediates |
| Options Traded | Call | Put, Call |
| Number of Positions | 1 | 2 |
| Action Needed | Sell Call Option | Sell One OTM Put, Buy One OTM Call |
| Risk for You | Unlimited | Unlimited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Strike Price PLUS Premium | Call Strike + Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Low Upfront Investments, High ROI |
| Investor Expectation | Prices of Assets Go Down Sharply | Price of Stocks Go Up |
| Strategy Summary | Risky | Complex |
| Advantages | Profits in Bearish Market | Low Upfront Investment, Unlimited Profits |
| Disadvantages | Limited Profit, Unlimited Risk | Unlimited Loss, High Premium |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | Naked Call, Uncovered Call | NA |
| More Comparisons | Short Call Vs Short Put | Long Combo Vs Short Put |
| Short Call Vs Long Combo | Long Combo Vs Long Put | |
| Short Call Vs Synthetic Call | Long Combo Vs Synthetic Call | |
| Short Call Vs Long Put | Long Combo Vs Short Call | |
| Short Call Vs Long Call | Long Combo Vs Long Call | |
| Short Call Vs Covered Call | Long Combo Vs Covered Call | |
| Short Call Vs Covered Put | Long Combo Vs Covered Put | |
| Short Call Vs Protective Call | Long Combo Vs Protective Call | |
| Short Call Vs Short Box | Long Combo Vs Short Box | |
| Short Call Vs Long Call Condor | Long Combo Vs Long Call Condor | |
| Short Call Vs Short Call Condor | Long Combo Vs Short Call Condor | |
| Short Call Vs Box Spread | Long Combo Vs Box Spread | |
| Short Call Vs Short Strangle | Long Combo Vs Short Strangle | |
| Short Call Vs Long Strangle | Long Combo Vs Long Strangle | |
| Short Call Vs Collar Strategy | Long Combo Vs Collar Strategy | |
| Short Call Vs Long Straddle | Long Combo Vs Long Straddle | |
| Short Call Vs Short Straddle | Long Combo Vs Short Straddle | |
| Short Call Vs Long Call Butterfly | Long Combo Vs Long Call Butterfly | |
| Short Call Vs Short Call Butterfly | Long Combo Vs Short Call Butterfly | |
| Short Call Vs Bear Call Spread | Long Combo Vs Bear Call Spread | |
| Short Call Vs Bear Put Spread | Long Combo Vs Bear Put Spread | |
| Short Call Vs Bull Call Spread | Long Combo Vs Bull Call Spread | |
| Short Call Vs Bull Put Spread | Long Combo Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Short Call Vs Long Combo option strategies.
As mentioned above, if you are looking to put minimal initial investment and have a high-risk appetite, then Short Call options strategy can work wonders for you.
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.
In case you are looking to trade in options segment or share market in general, let us assist you in that. Just fill the form below and we will take you to the steps ahead.
