SHORT CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
About Strategy	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the 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 BUTTERFLY Vs DIAGONAL BULL CALL SPREAD - Details

	SHORT CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

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

	SHORT CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

SHORT CALL BUTTERFLY Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	SHORT CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	The profit is limited to the net premium received.
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium
Risk	Limited	Limited
Reward	Limited	Limited

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

	SHORT CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
Similar Strategies	Long Straddle, Long Call Butterfly	Bull Put Spread
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.
Advantages	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.