THE COLLAR	BULL CALL SPREAD
About Strategy	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op Read more..	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. .. Read more..

THE COLLAR Vs BULL CALL SPREAD - Details

	THE COLLAR	BULL CALL SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike price of purchased call + net premium paid

THE COLLAR Vs BULL CALL SPREAD - When & How to use ?

	THE COLLAR	BULL CALL SPREAD
Market View	Bullish	Bullish
When to use?	It should be used only in case where trader is certain about the bearish market view.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike price of purchased call + net premium paid

THE COLLAR Vs BULL CALL SPREAD - Risk & Reward

	THE COLLAR	BULL CALL SPREAD
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Limited

THE COLLAR Vs BULL CALL SPREAD - Strategy Pros & Cons

	THE COLLAR	BULL CALL SPREAD
Similar Strategies	Call Spread, Bull Put Spread	Collar
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.
Advantages	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.