DIAGONAL BULL CALL SPREAD	RISK REVERSAL
About Strategy	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..	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod .. Read more..

DIAGONAL BULL CALL SPREAD Vs RISK REVERSAL - Details

	DIAGONAL BULL CALL SPREAD	RISK REVERSAL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point		Premium received - Put Strike Price

DIAGONAL BULL CALL SPREAD Vs RISK REVERSAL - When & How to use ?

	DIAGONAL BULL CALL SPREAD	RISK REVERSAL
Market View	Bullish	Bullish
When to use?		This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
Breakeven Point		Premium received - Put Strike Price

DIAGONAL BULL CALL SPREAD Vs RISK REVERSAL - Risk & Reward

	DIAGONAL BULL CALL SPREAD	RISK REVERSAL
Maximum Profit Scenario		You have unlimited profit potential to the upside.
Maximum Loss Scenario		You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Limited	Unlimited

DIAGONAL BULL CALL SPREAD Vs RISK REVERSAL - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	RISK REVERSAL
Similar Strategies	Bull Put Spread	-
Disadvantage		Unlimited Risk.
Advantages		Unlimited profit.