Compare Strategies
DIAGONAL BULL CALL SPREAD | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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About Strategy |
Diagonal Bull Call Spread Option StrategyThis 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:
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Christmas Tree Spread with Call Option StrategyThis Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one call at strike price A, skipping strike price B, writes three calls at strike price C, and buying two calls at strike price D for same expiration dates for neutral to bullish forecast. An investor used this strategy to potential retur .. |
DIAGONAL BULL CALL SPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details
DIAGONAL BULL CALL SPREAD | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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Market View | Bullish | Bullish |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 2 | 4 |
Strategy Level | Beginners | Advance |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Lowest strike prices + premium paid – the half premium. |
DIAGONAL BULL CALL SPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - When & How to use ?
DIAGONAL BULL CALL SPREAD | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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Market View | Bullish | Bullish |
When to use? | This Strategy is used when an investor wants potential returns. | |
Action | Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call | • Buy 1 call , • Sell 3 calls, • Buy 2 calls |
Breakeven Point | Lowest strike prices + premium paid – the half premium. |
DIAGONAL BULL CALL SPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Risk & Reward
DIAGONAL BULL CALL SPREAD | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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Maximum Profit Scenario | Equal middle strike price – lower strike price – the premium | |
Maximum Loss Scenario | Net Debit paid for the strategy. | |
Risk | Limited | Limited |
Reward | Limited | Limited |
DIAGONAL BULL CALL SPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Strategy Pros & Cons
DIAGONAL BULL CALL SPREAD | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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Similar Strategies | Bull Put Spread | CHRISTMAS TREE SPREAD WITH PUT OPTION |
Disadvantage | • Potential profit is lower or limited. | |
Advantages | • The potential of loss is limited. |