PROTECTIVE CALL	DIAGONAL BULL CALL SPREAD
About Strategy	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. 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..

PROTECTIVE CALL Vs DIAGONAL BULL CALL SPREAD - Details

	PROTECTIVE CALL	DIAGONAL BULL CALL SPREAD
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid

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

	PROTECTIVE CALL	DIAGONAL BULL CALL SPREAD
Market View	Bearish	Bullish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy 1 ATM Call	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Sale Price of Underlying + Premium Paid

PROTECTIVE CALL Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	PROTECTIVE CALL	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	PROTECTIVE CALL	DIAGONAL BULL CALL SPREAD
Similar Strategies	Put Backspread, Long Put	Bull Put Spread
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.