Compare Strategies
DIAGONAL BULL CALL SPREAD | LONG PUT LADDER | |
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About Strategy |
Diagonal Bull Call Spread Option StrategyThis 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:
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Long Put Ladder Option StrategyLong Put Ladder can be implemented when a trader is slightly bearish on the market and volatility. It involves buying of an ITM Put Option and sale of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is unlimited and reward is limited. Risk:< .. |
DIAGONAL BULL CALL SPREAD Vs LONG PUT LADDER - Details
DIAGONAL BULL CALL SPREAD | LONG PUT LADDER | |
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Market View | Bullish | Neutral |
Type (CE/PE) | CE (Call Option) | PE (Put Option) |
Number Of Positions | 2 | 3 |
Strategy Level | Beginners | Advance |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Unlimited |
Breakeven Point | Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid |
DIAGONAL BULL CALL SPREAD Vs LONG PUT LADDER - When & How to use ?
DIAGONAL BULL CALL SPREAD | LONG PUT LADDER | |
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Market View | Bullish | Neutral |
When to use? | This Strategy can be implemented when a trader is slightly bearish on the market and volatility. | |
Action | Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call | Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put |
Breakeven Point | Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid |
DIAGONAL BULL CALL SPREAD Vs LONG PUT LADDER - Risk & Reward
DIAGONAL BULL CALL SPREAD | LONG PUT LADDER | |
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Maximum Profit Scenario | Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid | |
Maximum Loss Scenario | When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid | |
Risk | Limited | Unlimited |
Reward | Limited | Limited |
DIAGONAL BULL CALL SPREAD Vs LONG PUT LADDER - Strategy Pros & Cons
DIAGONAL BULL CALL SPREAD | LONG PUT LADDER | |
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Similar Strategies | Bull Put Spread | Short Strangle (Sell Strangle), Short Straddle (Sell Straddle) |
Disadvantage | • Unlimited risk. • Margin required. | |
Advantages | • Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit. |