SHORT STRANGLE	BULL CALL SPREAD
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if Read more..	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. .. Read more..

SHORT STRANGLE Vs BULL CALL SPREAD - Details

	SHORT STRANGLE	BULL CALL SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike price of purchased call + net premium paid

SHORT STRANGLE Vs BULL CALL SPREAD - When & How to use ?

	SHORT STRANGLE	BULL CALL SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Sell OTM Call, Sell OTM Put	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike price of purchased call + net premium paid

SHORT STRANGLE Vs BULL CALL SPREAD - Risk & Reward

	SHORT STRANGLE	BULL CALL SPREAD
Maximum Profit Scenario	Maximum Profit = Net Premium Received	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received	Net Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT STRANGLE Vs BULL CALL SPREAD - Strategy Pros & Cons

	SHORT STRANGLE	BULL CALL SPREAD
Similar Strategies	Short Straddle, Long Strangle	Collar
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.