BULL CALL SPREAD	SHORT STRANGLE
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..	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

BULL CALL SPREAD Vs SHORT STRANGLE - Details

	BULL CALL SPREAD	SHORT STRANGLE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put 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	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

BULL CALL SPREAD Vs SHORT STRANGLE - When & How to use ?

	BULL CALL SPREAD	SHORT STRANGLE
Market View	Bullish	Neutral
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.	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Buy ITM Call Option, Sell OTM Call Option	Sell OTM Call, Sell OTM Put
Breakeven Point	Strike price of purchased call + net premium paid	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

BULL CALL SPREAD Vs SHORT STRANGLE - Risk & Reward

	BULL CALL SPREAD	SHORT STRANGLE
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Net Premium Paid	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL CALL SPREAD Vs SHORT STRANGLE - Strategy Pros & Cons

	BULL CALL SPREAD	SHORT STRANGLE
Similar Strategies	Collar	Short Straddle, Long Strangle
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 loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.