DIAGONAL BULL CALL SPREAD	CALL BACKSPREAD
About Strategy	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..	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..

DIAGONAL BULL CALL SPREAD Vs CALL BACKSPREAD - Details

	DIAGONAL BULL CALL SPREAD	CALL BACKSPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
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

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

	DIAGONAL BULL CALL SPREAD	CALL BACKSPREAD
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.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point		Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

DIAGONAL BULL CALL SPREAD Vs CALL BACKSPREAD - Risk & Reward

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

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

	DIAGONAL BULL CALL SPREAD	CALL BACKSPREAD
Similar Strategies	Bull Put Spread	-
Disadvantage
Advantages		• Unlimited profit potential.