BULL CALL SPREAD	COVERED PUT
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 Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

BULL CALL SPREAD Vs COVERED PUT - Details

	BULL CALL SPREAD	COVERED PUT
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option) + Underlying
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	Futures Price + Premium Received

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

	BULL CALL SPREAD	COVERED PUT
Market View	Bullish	Bearish
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.	The Covered Put works well when the market is moderately Bearish.
Action	Buy ITM Call Option, Sell OTM Call Option	Sell Underlying Sell OTM Put Option
Breakeven Point	Strike price of purchased call + net premium paid	Futures Price + Premium Received

BULL CALL SPREAD Vs COVERED PUT - Risk & Reward

	BULL CALL SPREAD	COVERED PUT
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Net Premium Paid	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL CALL SPREAD Vs COVERED PUT - Strategy Pros & Cons

	BULL CALL SPREAD	COVERED PUT
Similar Strategies	Collar	Bear Put Spread, Bear 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.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
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.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.