COVERED CALL	DIAGONAL BULL CALL SPREAD
About Strategy	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o 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..

COVERED CALL Vs DIAGONAL BULL CALL SPREAD - Details

	COVERED CALL	DIAGONAL BULL CALL SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Purchase Price of Underlying- Premium Received

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

	COVERED CALL	DIAGONAL BULL CALL SPREAD
Market View	Bullish	Bullish
When to use?	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.
Action	(Buy Underlying) (Sell OTM Call Option)	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Purchase Price of Underlying- Premium Received

COVERED CALL Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	COVERED CALL	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + Premium Received
Maximum Loss Scenario	Purchase Price of Underlying - Price of Underlying) + Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED CALL Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	COVERED CALL	DIAGONAL BULL CALL SPREAD
Similar Strategies	Bull Call Spread	Bull Put Spread
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.
Advantages	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.