DIAGONAL BULL CALL SPREAD	COVERED PUT
About Strategy	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 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 Vs COVERED PUT - Details

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

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

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

DIAGONAL BULL CALL SPREAD Vs COVERED PUT - Risk & Reward

	DIAGONAL BULL CALL SPREAD	COVERED PUT
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	Limited	Unlimited
Reward	Limited	Limited

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

	DIAGONAL BULL CALL SPREAD	COVERED PUT
Similar Strategies	Bull Put Spread	Bear Put Spread, Bear Call 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.