RATIO CALL SPREAD	DIAGONAL BULL CALL SPREAD
About Strategy	Ratio Call Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by trader who is 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 since he is Read more..	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 CALL SPREAD Vs DIAGONAL BULL CALL SPREAD - Details

	RATIO CALL SPREAD	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

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

	RATIO CALL SPREAD	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is used by trader who is 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 since he is selling two calls.
Action	Buy 1 ITM Call, Sell 2 OTM Calls	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

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

	RATIO CALL SPREAD	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

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

	RATIO CALL SPREAD	DIAGONAL BULL CALL SPREAD
Similar Strategies	Variable Ratio Write	Bull Put Spread
Disadvantage	• Unlimited potential loss. • Complex strategy with limited profit.
Advantages	• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.