Compare Strategies
DIAGONAL BULL CALL SPREAD | MARRIED PUT | |
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About Strategy |
Diagonal Bull Call Spread Option StrategyThis 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:
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Married Put Option StrategyThis strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. |
DIAGONAL BULL CALL SPREAD Vs MARRIED PUT - Details
DIAGONAL BULL CALL SPREAD | MARRIED PUT | |
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Market View | Bullish | Bullish |
Type (CE/PE) | CE (Call Option) | PE (Put Option) |
Number Of Positions | 2 | 1 |
Strategy Level | Beginners | Beginners |
Reward Profile | Limited | Unlimited |
Risk Profile | Limited | Limited |
Breakeven Point | Purchase Price of Underlying + Premium Paid |
DIAGONAL BULL CALL SPREAD Vs MARRIED PUT - When & How to use ?
DIAGONAL BULL CALL SPREAD | MARRIED PUT | |
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Market View | Bullish | Bullish |
When to use? | This Strategy work when the investor goes long in any stock. He expects the rise in market in future. | |
Action | Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call | Buy 250 XYZ Shares, Buy 1 ATM Put Option |
Breakeven Point | Purchase Price of Underlying + Premium Paid |
DIAGONAL BULL CALL SPREAD Vs MARRIED PUT - Risk & Reward
DIAGONAL BULL CALL SPREAD | MARRIED PUT | |
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Maximum Profit Scenario | Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid | |
Maximum Loss Scenario | Max Loss = Premium Paid + Commissions Paid | |
Risk | Limited | Limited |
Reward | Limited | Unlimited |
DIAGONAL BULL CALL SPREAD Vs MARRIED PUT - Strategy Pros & Cons
DIAGONAL BULL CALL SPREAD | MARRIED PUT | |
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Similar Strategies | Bull Put Spread | Long Call |
Disadvantage | Cost of the put options eats into profit margin. | |
Advantages | Unlimited Profit and Limited Risk |