LONG STRANGLE	DIAGONAL BULL CALL SPREAD
About Strategy	Long Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the 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 STRANGLE Vs DIAGONAL BULL CALL SPREAD - Details

	LONG STRANGLE	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	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

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

	LONG STRANGLE	DIAGONAL BULL CALL SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buy OTM Call Option, Buy OTM Put Option	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

LONG STRANGLE Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	LONG STRANGLE	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	LONG STRANGLE	DIAGONAL BULL CALL SPREAD
Similar Strategies	Long Straddle, Short Strangle	Bull Put Spread
Disadvantage	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
Advantages	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .