BULL CALL SPREAD	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

BULL CALL SPREAD Vs CALL BACKSPREAD - Details

	BULL CALL SPREAD	CALL BACKSPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of purchased call + net premium paid	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	BULL CALL SPREAD	CALL BACKSPREAD
Market View	Bullish	Bullish
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 used when the investor expects the price of the stock to rise in the future.
Action	Buy ITM Call Option, Sell OTM Call Option	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Strike price of purchased call + net premium paid	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

BULL CALL SPREAD Vs CALL BACKSPREAD - Risk & Reward

	BULL CALL SPREAD	CALL BACKSPREAD
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Net Premium Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

BULL CALL SPREAD Vs CALL BACKSPREAD - Strategy Pros & Cons

	BULL CALL SPREAD	CALL BACKSPREAD
Similar Strategies	Collar	-
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.
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.	• Unlimited profit potential.