DIAGONAL BULL CALL SPREAD	SHORT GUTS
About Strategy	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..	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < .. Read more..

DIAGONAL BULL CALL SPREAD Vs SHORT GUTS - Details

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

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

	DIAGONAL BULL CALL SPREAD	SHORT GUTS
Market View	Bullish	Neutral
When to use?		This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	Sell 1 ITM Call, Sell 1 ITM Put
Breakeven Point		Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

DIAGONAL BULL CALL SPREAD Vs SHORT GUTS - Risk & Reward

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

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

	DIAGONAL BULL CALL SPREAD	SHORT GUTS
Similar Strategies	Bull Put Spread	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage		• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.
Advantages		• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.