SHORT CALL	DIAGONAL BULL CALL SPREAD
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy 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..

SHORT CALL Vs DIAGONAL BULL CALL SPREAD - Details

	SHORT CALL	DIAGONAL BULL CALL SPREAD
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received

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

	SHORT CALL	DIAGONAL BULL CALL SPREAD
Market View	Bearish	Bullish
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Sell or Write Call Option	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Strike Price of Short Call + Premium Received

SHORT CALL Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	SHORT CALL	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Max Profit = Premium Received
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT CALL Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	SHORT CALL	DIAGONAL BULL CALL SPREAD
Similar Strategies	Covered Put, Covered Calls	Bull Put Spread
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.