COVERED CALL	BULL CALL SPREAD
About Strategy	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 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 Vs BULL CALL SPREAD - Details

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

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

	COVERED CALL	BULL CALL SPREAD
Market View	Bullish	Bullish
When to use?	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.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	(Buy Underlying) (Sell OTM Call Option)	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike price of purchased call + net premium paid

COVERED CALL Vs BULL CALL SPREAD - Risk & Reward

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

COVERED CALL Vs BULL CALL SPREAD - Strategy Pros & Cons

	COVERED CALL	BULL CALL SPREAD
Similar Strategies	Bull Call Spread	Collar
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• 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.
Advantages	• 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.	• 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.