LONG GUTS	DIAGONAL BULL CALL SPREAD
About Strategy	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< 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 GUTS Vs DIAGONAL BULL CALL SPREAD - Details

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

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

	LONG GUTS	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.
Action	Buy 1 ITM Call, Buy 1 ITM Put	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

LONG GUTS Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	LONG GUTS	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Price of Underlying - Strike Price of Long Call - Net Premium Paid OR Strike Price of Long Put - Price of Underlying - Premium Paid
Maximum Loss Scenario	Net Premium Paid + Strike Price of Long Put - Strike Price of Long Call + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	LONG GUTS	DIAGONAL BULL CALL SPREAD
Similar Strategies	Short Put Ladder, Strip, Strap	Bull Put Spread
Disadvantage	• More commission involved than simply buying call or put option. • Expensive.
Advantages	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.