DIAGONAL BULL CALL SPREAD	SHORT CALL
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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

DIAGONAL BULL CALL SPREAD Vs SHORT CALL - Details

	DIAGONAL BULL CALL SPREAD	SHORT CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point		Strike Price of Short Call + Premium Received

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

	DIAGONAL BULL CALL SPREAD	SHORT CALL
Market View	Bullish	Bearish
When to use?		It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Sell or Write Call Option
Breakeven Point		Strike Price of Short Call + Premium Received

DIAGONAL BULL CALL SPREAD Vs SHORT CALL - Risk & Reward

	DIAGONAL BULL CALL SPREAD	SHORT CALL
Maximum Profit Scenario		Max Profit = Premium Received
Maximum Loss Scenario		Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	DIAGONAL BULL CALL SPREAD	SHORT CALL
Similar Strategies	Bull Put Spread	Covered Put, Covered Calls
Disadvantage		• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages		• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.