DIAGONAL BULL CALL SPREAD	LONG CALL BUTTERFLY
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..	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

DIAGONAL BULL CALL SPREAD Vs LONG CALL BUTTERFLY - Details

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

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

	DIAGONAL BULL CALL SPREAD	LONG CALL BUTTERFLY
Market View	Bullish	Neutral
When to use?		This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point		Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	DIAGONAL BULL CALL SPREAD	LONG CALL BUTTERFLY
Maximum Profit Scenario		Adjacent strikes - Net premium debit.
Maximum Loss Scenario		Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Limited

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

	DIAGONAL BULL CALL SPREAD	LONG CALL BUTTERFLY
Similar Strategies	Bull Put Spread	-
Disadvantage		• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages		• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.