DIAGONAL BULL CALL SPREAD	SHORT 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..	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

DIAGONAL BULL CALL SPREAD Vs SHORT STRANGLE - Details

	DIAGONAL BULL CALL SPREAD	SHORT 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	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point		Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

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

	DIAGONAL BULL CALL SPREAD	SHORT STRANGLE
Market View	Bullish	Neutral
When to use?		This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Sell OTM Call, Sell OTM Put
Breakeven Point		Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

DIAGONAL BULL CALL SPREAD Vs SHORT STRANGLE - Risk & Reward

	DIAGONAL BULL CALL SPREAD	SHORT STRANGLE
Maximum Profit Scenario		Maximum Profit = Net Premium Received
Maximum Loss Scenario		Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	DIAGONAL BULL CALL SPREAD	SHORT STRANGLE
Similar Strategies	Bull Put Spread	Short Straddle, Long Strangle
Disadvantage		• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages		• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.