COVERED COMBINATION	DIAGONAL BULL CALL SPREAD
About Strategy	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un 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..

COVERED COMBINATION Vs DIAGONAL BULL CALL SPREAD - Details

	COVERED COMBINATION	DIAGONAL BULL CALL SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

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

	COVERED COMBINATION	DIAGONAL BULL CALL SPREAD
Market View	Bullish	Bullish
When to use?	This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.
Action	Sell 1 OTM Call, Sell 1 OTM Put	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

COVERED COMBINATION Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	COVERED COMBINATION	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED COMBINATION Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	COVERED COMBINATION	DIAGONAL BULL CALL SPREAD
Similar Strategies	Stock Repair Strategy	Bull Put Spread
Disadvantage	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.
Advantages	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.