STRAP	BULL CALL SPREAD
About Strategy	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin 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..

STRAP Vs BULL CALL SPREAD - Details

	STRAP	BULL CALL SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Beginners	Beginners
Reward Profile	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid	Limited
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike price of purchased call + net premium paid

STRAP Vs BULL CALL SPREAD - When & How to use ?

	STRAP	BULL CALL SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike price of purchased call + net premium paid

STRAP Vs BULL CALL SPREAD - Risk & Reward

	STRAP	BULL CALL SPREAD
Maximum Profit Scenario	UNLIMITED	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	Net Premium Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

STRAP Vs BULL CALL SPREAD - Strategy Pros & Cons

	STRAP	BULL CALL SPREAD
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Collar
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• 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	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• 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.