LONG CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
About Strategy	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho 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..

LONG CALL BUTTERFLY Vs DIAGONAL BULL CALL SPREAD - Details

	LONG CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

LONG CALL BUTTERFLY Vs DIAGONAL BULL CALL SPREAD - When & How to use ?

	LONG CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

LONG CALL BUTTERFLY Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	LONG CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	LONG CALL BUTTERFLY	DIAGONAL BULL CALL SPREAD
Similar Strategies	-	Bull Put Spread
Disadvantage	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.