DIAGONAL BULL CALL SPREAD	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

DIAGONAL BULL CALL SPREAD Vs STRAP - Details

	DIAGONAL BULL CALL SPREAD	STRAP
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point		Strike Price of Calls/Puts + (Net Premium Paid/2)

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

	DIAGONAL BULL CALL SPREAD	STRAP
Market View	Bullish	Neutral
When to use?		This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point		Strike Price of Calls/Puts + (Net Premium Paid/2)

DIAGONAL BULL CALL SPREAD Vs STRAP - Risk & Reward

	DIAGONAL BULL CALL SPREAD	STRAP
Maximum Profit Scenario		UNLIMITED
Maximum Loss Scenario		Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

DIAGONAL BULL CALL SPREAD Vs STRAP - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	STRAP
Similar Strategies	Bull Put Spread	Strip, Short Put Ladder, Short Call Ladder
Disadvantage		• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages		• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.