CALL BACKSPREAD	LONG CALL
About Strategy	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 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 Vs LONG CALL - Details

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

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

	CALL BACKSPREAD	LONG CALL
Market View	Bullish	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.)
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buying Call option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike price + Premium

CALL BACKSPREAD Vs LONG CALL - Risk & Reward

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

CALL BACKSPREAD Vs LONG CALL - Strategy Pros & Cons

	CALL BACKSPREAD	LONG CALL
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	• Unlimited profit potential.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.