LONG CALL	CALL BACKSPREAD
About Strategy	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. 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..

LONG CALL Vs CALL BACKSPREAD - Details

	LONG CALL	CALL BACKSPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	3
Strategy Level	Beginner Level	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price + Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

LONG CALL Vs CALL BACKSPREAD - When & How to use ?

	LONG CALL	CALL BACKSPREAD
Market View	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)	Bullish
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Buying Call option	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Strike price + Premium	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

LONG CALL Vs CALL BACKSPREAD - Risk & Reward

	LONG CALL	CALL BACKSPREAD
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Premium Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG CALL Vs CALL BACKSPREAD - Strategy Pros & Cons

	LONG CALL	CALL BACKSPREAD
Similar Strategies	Protective Put	-
Disadvantage	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• Unlimited profit potential.