DIAGONAL BULL CALL SPREAD	RATIO PUT WRITE
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..	Ratio Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. .. Read more..

DIAGONAL BULL CALL SPREAD Vs RATIO PUT WRITE - Details

	DIAGONAL BULL CALL SPREAD	RATIO PUT WRITE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts
Risk Profile	Limited	Loss Occurs When Price of Underlying < Strike Price of Short Put - Net Premium Received OR Price of Underlying > Strike Price of Short Put + Net Premium Received
Breakeven Point		Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

DIAGONAL BULL CALL SPREAD Vs RATIO PUT WRITE - When & How to use ?

	DIAGONAL BULL CALL SPREAD	RATIO PUT WRITE
Market View	Bullish	Neutral
When to use?		This strategy is implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Sell 2 ATM Puts
Breakeven Point		Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

DIAGONAL BULL CALL SPREAD Vs RATIO PUT WRITE - Risk & Reward

	DIAGONAL BULL CALL SPREAD	RATIO PUT WRITE
Maximum Profit Scenario		Net Premium Received - Commissions Paid
Maximum Loss Scenario		Price of Underlying - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

DIAGONAL BULL CALL SPREAD Vs RATIO PUT WRITE - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	RATIO PUT WRITE
Similar Strategies	Bull Put Spread	Short Strangle and Short Straddle
Disadvantage		• Potential loss is higher than gain. • Limited profit.
Advantages