DIAGONAL BULL CALL SPREAD	COVERED COMBINATION
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 Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un .. Read more..

DIAGONAL BULL CALL SPREAD Vs COVERED COMBINATION - Details

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

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

	DIAGONAL BULL CALL SPREAD	COVERED COMBINATION
Market View	Bullish	Bullish
When to use?		This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Sell 1 OTM Call, Sell 1 OTM Put
Breakeven Point		(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

DIAGONAL BULL CALL SPREAD Vs COVERED COMBINATION - Risk & Reward

	DIAGONAL BULL CALL SPREAD	COVERED COMBINATION
Maximum Profit Scenario		Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid
Maximum Loss Scenario		Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	DIAGONAL BULL CALL SPREAD	COVERED COMBINATION
Similar Strategies	Bull Put Spread	Stock Repair Strategy
Disadvantage		Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.
Advantages		Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.