LONG STRANGLE	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..	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..

LONG STRANGLE Vs BULL CALL SPREAD - Details

	LONG STRANGLE	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	Strike price of purchased call + net premium paid

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

	LONG STRANGLE	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.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Buy OTM Call Option, Buy OTM Put Option	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Strike price of purchased call + net premium paid

LONG STRANGLE Vs BULL CALL SPREAD - Risk & Reward

	LONG STRANGLE	BULL CALL SPREAD
Maximum Profit Scenario	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG STRANGLE Vs BULL CALL SPREAD - Strategy Pros & Cons

	LONG STRANGLE	BULL CALL SPREAD
Similar Strategies	Long Straddle, Short Strangle	Collar
Disadvantage	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.	• 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	• 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 .	• 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.