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 Put 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 Put 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 Put Vs Long Combo comparison:
| Comparison Aspect | Long Put | Long Combo |
| View |  |  |
| Strategy Introduction | Long Put is used when the trader has a bearish view on the market and expects the price of the asset to go down. He will then wait for the prices to go down and then exercise his option...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 strategy gives the trader a right to buy the put option on expiry, but not the obligation. The trader may choose to buy the option or not. | 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 | Beginners | Intermediates |
| Options Traded | Put | Put, Call |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Put Option | Sell One OTM Put, Buy One OTM Call |
| Risk for You | Limited | Unlimited |
| Profit Potential | Unlimited | Unlimited |
| Break Even Point for Investor | Strike Price MINUS Premium | Call Strike + Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Low Upfront Investments, High ROI |
| Investor Expectation | Prices of Assets Go Down | Price of Stocks Go Up |
| Strategy Summary | Effective | Complex |
| Advantages | Unlimited Profits, Profits possible even in Bearish Market | Low Upfront Investment, Unlimited Profits |
| Disadvantages | High Premium | Unlimited Loss, High Premium |
| Market Scenarios - Profit | 2 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Put Vs Short Put | Long Combo Vs Short Put |
| Long Put Vs Long Combo | Long Combo Vs Long Put | |
| Long Put Vs Synthetic Call | Long Combo Vs Synthetic Call | |
| Long Put Vs Short Call | Long Combo Vs Short Call | |
| Long Put Vs Long Call | Long Combo Vs Long Call | |
| Long Put Vs Covered Call | Long Combo Vs Covered Call | |
| Long Put Vs Covered Put | Long Combo Vs Covered Put | |
| Long Put Vs Protective Call | Long Combo Vs Protective Call | |
| Long Put Vs Short Box | Long Combo Vs Short Box | |
| Long Put Vs Long Call Condor | Long Combo Vs Long Call Condor | |
| Long Put Vs Short Call Condor | Long Combo Vs Short Call Condor | |
| Long Put Vs Box Spread | Long Combo Vs Box Spread | |
| Long Put Vs Short Strangle | Long Combo Vs Short Strangle | |
| Long Put Vs Long Strangle | Long Combo Vs Long Strangle | |
| Long Put Vs Collar Strategy | Long Combo Vs Collar Strategy | |
| Long Put Vs Long Straddle | Long Combo Vs Long Straddle | |
| Long Put Vs Short Straddle | Long Combo Vs Short Straddle | |
| Long Put Vs Long Call Butterfly | Long Combo Vs Long Call Butterfly | |
| Long Put Vs Short Call Butterfly | Long Combo Vs Short Call Butterfly | |
| Long Put Vs Bear Call Spread | Long Combo Vs Bear Call Spread | |
| Long Put Vs Bear Put Spread | Long Combo Vs Bear Put Spread | |
| Long Put Vs Bull Call Spread | Long Combo Vs Bull Call Spread | |
| Long Put Vs Bull Put Spread | Long Combo Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Long Put Vs Long Combo option strategies.
As mentioned above, if you are a beginner level trader and are looking for unlimited profits with limited risk – it makes sense for you to employ Long Put Option Strategy. 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.
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.
