DIAGONAL BULL CALL SPREAD	LONG PUT 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 Put Butterfly Option Strategy  The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future. This strategy involves sale of 2 ATM Put Options, buy 1 ITM and 1 OTM Put Option. The risk and reward are limited. Read more..

DIAGONAL BULL CALL SPREAD Vs LONG PUT BUTTERFLY - Details

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

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

	DIAGONAL BULL CALL SPREAD	LONG PUT BUTTERFLY
Market View	Bullish	Neutral
When to use?		The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Buy 1 OTM Put, Sell 2 ATM Puts, Buy 1 ITM Put
Breakeven Point		Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid

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

	DIAGONAL BULL CALL SPREAD	LONG PUT BUTTERFLY
Maximum Profit Scenario		Strike Price of Higher Strike Long Put - Strike Price of Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario		When Price of Underlying <= Strike Price of Lower Strike Long Put OR Price of Underlying >= Strike Price of Higher Strike Long Put
Risk	Limited	Limited
Reward	Limited	Limited

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

	DIAGONAL BULL CALL SPREAD	LONG PUT BUTTERFLY
Similar Strategies	Bull Put Spread	Iron Condors, Iron Butterfly
Disadvantage		• Risk is higher than reward. • When the underlying price is in between the two breakeven points, time decay hurts the position.
Advantages		• Limited maximum loss. • Unlimited profit potential, risk only limited to loss of premium. • Benefits from low volatility.