DIAGONAL BULL CALL SPREAD	LONG STRANGLE
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..	Long Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the .. Read more..

DIAGONAL BULL CALL SPREAD Vs LONG STRANGLE - Details

	DIAGONAL BULL CALL SPREAD	LONG STRANGLE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point		Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

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

	DIAGONAL BULL CALL SPREAD	LONG STRANGLE
Market View	Bullish	Neutral
When to use?		This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Buy OTM Call Option, Buy OTM Put Option
Breakeven Point		Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

DIAGONAL BULL CALL SPREAD Vs LONG STRANGLE - Risk & Reward

	DIAGONAL BULL CALL SPREAD	LONG STRANGLE
Maximum Profit Scenario		Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid
Maximum Loss Scenario		Max Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

DIAGONAL BULL CALL SPREAD Vs LONG STRANGLE - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	LONG STRANGLE
Similar Strategies	Bull Put Spread	Long Straddle, Short Strangle
Disadvantage		• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
Advantages		• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .