DIAGONAL BULL CALL SPREAD	LONG GUTS
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..	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< .. Read more..

DIAGONAL BULL CALL SPREAD Vs LONG GUTS - Details

	DIAGONAL BULL CALL SPREAD	LONG GUTS
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point		Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

DIAGONAL BULL CALL SPREAD Vs LONG GUTS - When & How to use ?

	DIAGONAL BULL CALL SPREAD	LONG GUTS
Market View	Bullish	Neutral
When to use?		This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Buy 1 ITM Call, Buy 1 ITM Put
Breakeven Point		Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

DIAGONAL BULL CALL SPREAD Vs LONG GUTS - Risk & Reward

	DIAGONAL BULL CALL SPREAD	LONG GUTS
Maximum Profit Scenario		Price of Underlying - Strike Price of Long Call - Net Premium Paid OR Strike Price of Long Put - Price of Underlying - Premium Paid
Maximum Loss Scenario		Net Premium Paid + Strike Price of Long Put - Strike Price of Long Call + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

DIAGONAL BULL CALL SPREAD Vs LONG GUTS - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	LONG GUTS
Similar Strategies	Bull Put Spread	Short Put Ladder, Strip, Strap
Disadvantage		• More commission involved than simply buying call or put option. • Expensive.
Advantages		• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.