DIAGONAL BULL CALL SPREAD	PROTECTIVE CALL
About Strategy	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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

DIAGONAL BULL CALL SPREAD Vs PROTECTIVE CALL - Details

	DIAGONAL BULL CALL SPREAD	PROTECTIVE CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point		Sale Price of Underlying + Premium Paid

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

	DIAGONAL BULL CALL SPREAD	PROTECTIVE CALL
Market View	Bullish	Bearish
When to use?		This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Buy 1 ATM Call
Breakeven Point		Sale Price of Underlying + Premium Paid

DIAGONAL BULL CALL SPREAD Vs PROTECTIVE CALL - Risk & Reward

	DIAGONAL BULL CALL SPREAD	PROTECTIVE CALL
Maximum Profit Scenario		Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario		Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	DIAGONAL BULL CALL SPREAD	PROTECTIVE CALL
Similar Strategies	Bull Put Spread	Put Backspread, Long Put
Disadvantage		• Profitable when market moves as expected. • Not good for beginners.
Advantages		• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.