LONG PUT	DIAGONAL BULL CALL SPREAD
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< 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 PUT Vs DIAGONAL BULL CALL SPREAD - Details

	LONG PUT	DIAGONAL BULL CALL SPREAD
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Premium Paid

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

	LONG PUT	DIAGONAL BULL CALL SPREAD
Market View	Bearish	Bullish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy Put Option	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Strike Price of Long Put - Premium Paid

LONG PUT Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	LONG PUT	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	LONG PUT	DIAGONAL BULL CALL SPREAD
Similar Strategies	Protective Call, Short Put	Bull Put Spread
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.