DIAGONAL BULL CALL SPREAD	COVERED 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..	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o .. Read more..

DIAGONAL BULL CALL SPREAD Vs COVERED CALL - Details

	DIAGONAL BULL CALL SPREAD	COVERED CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point		Purchase Price of Underlying- Premium Received

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

	DIAGONAL BULL CALL SPREAD	COVERED CALL
Market View	Bullish	Bullish
When to use?		An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	(Buy Underlying) (Sell OTM Call Option)
Breakeven Point		Purchase Price of Underlying- Premium Received

DIAGONAL BULL CALL SPREAD Vs COVERED CALL - Risk & Reward

	DIAGONAL BULL CALL SPREAD	COVERED CALL
Maximum Profit Scenario		[Call Strike Price - Stock Price Paid] + Premium Received
Maximum Loss Scenario		Purchase Price of Underlying - Price of Underlying) + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	DIAGONAL BULL CALL SPREAD	COVERED CALL
Similar Strategies	Bull Put Spread	Bull Call Spread
Disadvantage		• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.
Advantages		• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.