RATIO CALL WRITE	DIAGONAL BULL CALL SPREAD
About Strategy	Ratio Call Write Option Strategy  This strategy involves buying of an underlying asset in the cash/futures market and simultaneously selling ATM Calls double the number of long quantity. This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. 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..

RATIO CALL WRITE Vs DIAGONAL BULL CALL SPREAD - Details

	RATIO CALL WRITE	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

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

	RATIO CALL WRITE	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Sell 2 ATM Calls	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

RATIO CALL WRITE Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	RATIO CALL WRITE	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

RATIO CALL WRITE Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	RATIO CALL WRITE	DIAGONAL BULL CALL SPREAD
Similar Strategies	Variable Ratio Write	Bull Put Spread
Disadvantage	• Potential loss is higher than gain. • Limited profit.
Advantages