DIAGONAL BULL CALL SPREAD	THE COLLAR
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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

DIAGONAL BULL CALL SPREAD Vs THE COLLAR - Details

	DIAGONAL BULL CALL SPREAD	THE COLLAR
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point		Price of Features - Call Premium + Put Premium

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

	DIAGONAL BULL CALL SPREAD	THE COLLAR
Market View	Bullish	Bullish
When to use?		It should be used only in case where trader is certain about the bearish market view.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point		Price of Features - Call Premium + Put Premium

DIAGONAL BULL CALL SPREAD Vs THE COLLAR - Risk & Reward

	DIAGONAL BULL CALL SPREAD	THE COLLAR
Maximum Profit Scenario		Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario		Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

DIAGONAL BULL CALL SPREAD Vs THE COLLAR - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	THE COLLAR
Similar Strategies	Bull Put Spread	Call Spread, Bull Put Spread
Disadvantage		• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages		• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.