When it comes to Options Trading, there are different complexities involved in terms of choosing a specific strategy that works the best for you.
At the same time, each strategy has its own set of advantages as well as limitations, thus making the concept of options trading even more challenging. Thus, in case you are looking to fit a particular strategy in your option trades, just check few areas before you make a choice.
In this detailed comparison of Long Call Vs Bull Call Spread options trading strategies, we will be looking at the below-mentioned aspects and more:
- Current Market Position
- Your Risk Appetite
- Your Trading Experience
- Profit Potential
- Intention and Expectation of a trader
- Break-even point of your trade
Apart from the Long Call Vs Bull Call Spread strategies, there are more than 25 comparisons of each of these strategies with other option strategies. With all these comparisons, you should be able to filter the ones that work the best for you.
Here is the detailed Long Call Vs Bull Call Spread comparison:
| Comparison Aspect | Long Call | Bull Call Spread |
| View |  |  |
| Strategy Introduction | In Long Call Strategy, the trader enters into a contract to buy a call option when he is bullish towards the market. The trader anticipates that the price of the security will go up in the future. However, he does not want to take the risk of buying the security outright...more | Bull Call Spread is a vertical options strategy that involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices...more |
| Investor Obligation | The trader has the right to buy a security at a future date at a predefined price. The term long itself means buying a security or buying an option. | It involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices. |
| Market Position | Bullish | Moderately Bullish |
| Strategy Level Suitable for | Intermediates | Beginners |
| Options Traded | Call | Call |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Call Option | 1 ATM Call, 1 OTM Call |
| Risk for You | Limited to Premium | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price PLUS Premium | Strike price of Purchased Call + Net premium paid |
| Investor Intention | Exercise Option if Profitable, Let it go otherwise | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets Go Up Sharply | Prices of the securities to Go Up moderately |
| Strategy Summary | Attractive | Safe Play |
| Advantages | Unlimited Profits, Limited Loss, Low Investment | Limited Risk |
| Disadvantages | Premium may eat up the Profits | Capped Profit |
| Market Scenarios - Profit | 1 | 3 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | NA | NA |
| More Comparisons | Long Call Vs Long Put | Bull Call Spread Vs Short Put |
| Long Call Vs Long Combo | Bull Call Spread Vs Long Combo | |
| Long Call Vs Synthetic Call | Bull Call Spread Vs Synthetic Call | |
| Long Call Vs Short Call | Bull Call Spread Vs Long Put | |
| Long Call Vs Short Put | Bull Call Spread Vs Long Call | |
| Long Call Vs Covered Call | Bull Call Spread Vs Covered Call | |
| Long Call Vs Covered Put | Bull Call Spread Vs Covered Put | |
| Long Call Vs Protective Call | Bull Call Spread Vs Protective Call | |
| Long Call Vs Short Box | Bull Call Spread Vs Short Box | |
| Long Call Vs Long Call Condor | Bull Call Spread Vs Long Call Condor | |
| Long Call Vs Short Call Condor | Bull Call Spread Vs Short Call Condor | |
| Long Call Vs Box Spread | Bull Call Spread Vs Box Spread | |
| Long Call Vs Short Strangle | Bull Call Spread Vs Short Strangle | |
| Long Call Vs Long Strangle | Bull Call Spread Vs Long Strangle | |
| Long Call Vs Collar Strategy | Bull Call Spread Vs Collar Strategy | |
| Long Call Vs Long Straddle | Bull Call Spread Vs Long Straddle | |
| Long Call Vs Short Straddle | Bull Call Spread Vs Short Straddle | |
| Long Call Vs Long Call Butterfly | Bull Call Spread Vs Long Call Butterfly | |
| Long Call Vs Short Call Butterfly | Bull Call Spread Vs Short Call Butterfly | |
| Long Call Vs Bear Call Spread | Bull Call Spread Vs Bear Call Spread | |
| Long Call Vs Bear Put Spread | Bull Call Spread Vs Bear Put Spread | |
| Long Call Vs Bull Call Spread | Bull Call Spread Vs Short Call | |
| Long Call Vs Bull Put Spread | Bull Call Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Call Vs Bull Call Spread option strategies.
As mentioned above, if you are in a Bullish market situation and want to make unlimited profits on your trades, then Long Call is one of the options trading strategies you can opt for. The risk involved in this strategy is more than limited and thus, the strategy can only work for higher profits if you have the experience to run similar strategies in the past.
At the same time, if you are in a moderately bullish market set-up and have a limited market risk appetite then you make consider using the Bull Call Spread strategy in your trades.
The profit you get using this strategy is also limited in scope.
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