CALL BACKSPREAD	BULL CALL SPREAD
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r Read more..	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. .. Read more..

CALL BACKSPREAD Vs BULL CALL SPREAD - Details

	CALL BACKSPREAD	BULL CALL SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike price of purchased call + net premium paid

CALL BACKSPREAD Vs BULL CALL SPREAD - When & How to use ?

	CALL BACKSPREAD	BULL CALL SPREAD
Market View	Bullish	Bullish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike price of purchased call + net premium paid

CALL BACKSPREAD Vs BULL CALL SPREAD - Risk & Reward

	CALL BACKSPREAD	BULL CALL SPREAD
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs BULL CALL SPREAD - Strategy Pros & Cons

	CALL BACKSPREAD	BULL CALL SPREAD
Similar Strategies	-	Collar
Disadvantage		• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.
Advantages	• Unlimited profit potential.	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.