COVERED PUT	DIAGONAL BULL CALL SPREAD
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the Read more..	Diagonal Bull Call Spread Option Strategy This strategy is implemented by a trader when he is neutral – moderately bullish in the near-month contract and bullish in the mid-month contract. It involves sale of 1 Near-Month OTM Call Option and buying of 1 Mid Month ITM Call Option. Risk: Read more..

COVERED PUT Vs DIAGONAL BULL CALL SPREAD - Details

	COVERED PUT	DIAGONAL BULL CALL SPREAD
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option) + Underlying	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Futures Price + Premium Received

COVERED PUT Vs DIAGONAL BULL CALL SPREAD - When & How to use ?

	COVERED PUT	DIAGONAL BULL CALL SPREAD
Market View	Bearish	Bullish
When to use?	The Covered Put works well when the market is moderately Bearish.
Action	Sell Underlying Sell OTM Put Option	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Futures Price + Premium Received

COVERED PUT Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	COVERED PUT	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED PUT Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	COVERED PUT	DIAGONAL BULL CALL SPREAD
Similar Strategies	Bear Put Spread, Bear Call Spread	Bull Put Spread
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.