BULL CALL SPREAD	COVERED CALL
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. Read more..	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o .. Read more..

BULL CALL SPREAD Vs COVERED CALL - Details

	BULL CALL SPREAD	COVERED CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of purchased call + net premium paid	Purchase Price of Underlying- Premium Received

BULL CALL SPREAD Vs COVERED CALL - When & How to use ?

	BULL CALL SPREAD	COVERED CALL
Market View	Bullish	Bullish
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.
Action	Buy ITM Call Option, Sell OTM Call Option	(Buy Underlying) (Sell OTM Call Option)
Breakeven Point	Strike price of purchased call + net premium paid	Purchase Price of Underlying- Premium Received

BULL CALL SPREAD Vs COVERED CALL - Risk & Reward

	BULL CALL SPREAD	COVERED CALL
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	[Call Strike Price - Stock Price Paid] + Premium Received
Maximum Loss Scenario	Net Premium Paid	Purchase Price of Underlying - Price of Underlying) + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL CALL SPREAD Vs COVERED CALL - Strategy Pros & Cons

	BULL CALL SPREAD	COVERED CALL
Similar Strategies	Collar	Bull Call Spread
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.