STRAP	DIAGONAL 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..	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..

STRAP Vs DIAGONAL BULL CALL SPREAD - Details

	STRAP	DIAGONAL 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)

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

	STRAP	DIAGONAL 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.
Action	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)

STRAP Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	STRAP	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	UNLIMITED
Maximum Loss Scenario	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

STRAP Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	STRAP	DIAGONAL BULL CALL SPREAD
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Bull Put Spread
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.
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.