SHORT STRANGLE	DIAGONAL BULL CALL SPREAD
About Strategy	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 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 Vs DIAGONAL BULL CALL SPREAD - Details

	SHORT STRANGLE	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

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

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

SHORT STRANGLE Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

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

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

	SHORT STRANGLE	DIAGONAL BULL CALL SPREAD
Similar Strategies	Short Straddle, Long Strangle	Bull Put Spread
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.