BEAR CALL SPREAD	SHORT CALL BUTTERFLY
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..	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the .. Read more..

BEAR CALL SPREAD Vs SHORT CALL BUTTERFLY - Details

	BEAR CALL SPREAD	SHORT CALL BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

BEAR CALL SPREAD Vs SHORT CALL BUTTERFLY - When & How to use ?

	BEAR CALL SPREAD	SHORT CALL BUTTERFLY
Market View	Bearish	Neutral
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 is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call
Breakeven Point	Strike Price of Short Call + Net Premium Received	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

BEAR CALL SPREAD Vs SHORT CALL BUTTERFLY - Risk & Reward

	BEAR CALL SPREAD	SHORT CALL BUTTERFLY
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	The profit is limited to the net premium received.
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Higher strike price- Lower Strike Price - Net Premium
Risk	Limited	Limited
Reward	Limited	Limited

BEAR CALL SPREAD Vs SHORT CALL BUTTERFLY - Strategy Pros & Cons

	BEAR CALL SPREAD	SHORT CALL BUTTERFLY
Similar Strategies	Bear Put Spread, Bull Call Spread	Long Straddle, Long Call Butterfly
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.
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.	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.