BEAR CALL SPREAD	LONG CALL
About Strategy	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r Read more..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

BEAR CALL SPREAD Vs LONG CALL - Details

	BEAR CALL SPREAD	LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Strike Price + Premium

BEAR CALL SPREAD Vs LONG CALL - When & How to use ?

	BEAR CALL SPREAD	LONG CALL
Market View	Bearish	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buy OTM Call Option, Sell ITM Call Option	Buying Call option
Breakeven Point	Strike Price of Short Call + Net Premium Received	Strike price + Premium

BEAR CALL SPREAD Vs LONG CALL - Risk & Reward

	BEAR CALL SPREAD	LONG CALL
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR CALL SPREAD Vs LONG CALL - Strategy Pros & Cons

	BEAR CALL SPREAD	LONG CALL
Similar Strategies	Bear Put Spread, Bull Call Spread	Protective Put
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.