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 Bull Call Spread Vs Long Strangle 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 Bull Call Spread Vs Long Strangle 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 Bull Call Spread Vs Long Strangle comparison:
| Comparison Aspect | Bull Call Spread | Long Strangle |
| View |  |  |
| Strategy Introduction | 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 | The long strangle strategy helps the trader to take advantage of the volatility in the market. It is a trend neutral strategy, so the trader does not need to be certain of the direction...more |
| Investor Obligation | It involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices. | It is a trend neutral strategy, so the trader does not need to be certain of the direction of the price movement. |
| Market Position | Moderately Bullish | Neutral |
| Strategy Level Suitable for | Beginners | Intermediates |
| Options Traded | Call | Call, Put |
| Number of Positions | 2 | 2 |
| Action Needed | 1 ATM Call, 1 OTM Call | One OTM Put, One OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Strike price of Purchased Call + Net premium paid | Lower Breakeven Point = Strike Price of Put - Net Premium Upper Breakeven Point = Strike Price of Call + Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Both call and put options expire worthlessly |
| Investor Expectation | Prices of the securities to Go Up moderately | Market Shows High Volatility |
| Strategy Summary | Safe Play | Attractive |
| Advantages | Limited Risk | Less Expensive, Limited Risk, Unlimited Gain |
| Disadvantages | Capped Profit | Price Movement has to be Big |
| Market Scenarios - Profit | 3 | 2 |
| Market Scenarios - Loss | 2 | 1 |
| Also called as | NA | NA |
| More Comparisons | Bull Call Spread Vs Short Put | Long Strangle Vs Short Put |
| Bull Call Spread Vs Long Combo | Long Strangle Vs Long Combo | |
| Bull Call Spread Vs Synthetic Call | Long Strangle Vs Synthetic Call | |
| Bull Call Spread Vs Long Put | Long Strangle Vs Long Put | |
| Bull Call Spread Vs Long Call | Long Strangle Vs Long Call | |
| Bull Call Spread Vs Covered Call | Long Strangle Vs Covered Call | |
| Bull Call Spread Vs Covered Put | Long Strangle Vs Covered Put | |
| Bull Call Spread Vs Protective Call | Long Strangle Vs Protective Call | |
| Bull Call Spread Vs Short Box | Long Strangle Vs Short Box | |
| Bull Call Spread Vs Long Call Condor | Long Strangle Vs Long Call Condor | |
| Bull Call Spread Vs Short Call Condor | Long Strangle Vs Short Call Condor | |
| Bull Call Spread Vs Box Spread | Long Strangle Vs Box Spread | |
| Bull Call Spread Vs Short Strangle | Long Strangle Vs Short Strangle | |
| Bull Call Spread Vs Long Strangle | Long Strangle Vs Short Call | |
| Bull Call Spread Vs Collar Strategy | Long Strangle Vs Collar Strategy | |
| Bull Call Spread Vs Long Straddle | Long Strangle Vs Long Straddle | |
| Bull Call Spread Vs Short Straddle | Long Strangle Vs Short Straddle | |
| Bull Call Spread Vs Long Call Butterfly | Long Strangle Vs Long Call Butterfly | |
| Bull Call Spread Vs Short Call Butterfly | Long Strangle Vs Short Call Butterfly | |
| Bull Call Spread Vs Bear Call Spread | Long Strangle Vs Bear Call Spread | |
| Bull Call Spread Vs Bear Put Spread | Long Strangle Vs Bear Put Spread | |
| Bull Call Spread Vs Short Call | Long Strangle Vs Bull Call Spread | |
| Bull Call Spread Vs Bull Put Spread | Long Strangle Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Bull Call Spread Vs Long Strangle option strategies.
If you are in a neutral market situation and are looking for unlimited profits from your share market trades, then you can opt to go for the Long Strangle strategy. Just remember, you need to be aware of the “right” strike prices for optimal gains.
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.
To add to that, the profit you get using this strategy is also limited in scope.
Furthermore, as told above, it also depends on the market situation.
In case you are looking to trade in options segment or share market in general, let us assist you in that. Just fill the form below and we will take you to the steps ahead.
