LONG COMBO	DIAGONAL BULL CALL SPREAD
About Strategy	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received Read more..	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 COMBO Vs DIAGONAL BULL CALL SPREAD - Details

	LONG COMBO	DIAGONAL BULL CALL SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Call Strike + Net Premium

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

	LONG COMBO	DIAGONAL BULL CALL SPREAD
Market View	Bullish	Bullish
When to use?	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	Sell OTM Put Option, Buy OTM Call Option	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Call Strike + Net Premium

LONG COMBO Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	LONG COMBO	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Underlying asset goes down and Put option exercised
Risk	Unlimited	Limited
Reward	Unlimited	Limited

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

	LONG COMBO	DIAGONAL BULL CALL SPREAD
Similar Strategies	-	Bull Put Spread
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.