BEAR CALL SPREAD	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

BEAR CALL SPREAD Vs CALL BACKSPREAD - Details

	BEAR CALL SPREAD	CALL BACKSPREAD
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	BEAR CALL SPREAD	CALL BACKSPREAD
Market View	Bearish	Bullish
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 used when the investor expects the price of the stock to rise in the future.
Action	Buy OTM Call Option, Sell ITM Call Option	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Strike Price of Short Call + Net Premium Received	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

BEAR CALL SPREAD Vs CALL BACKSPREAD - Risk & Reward

	BEAR CALL SPREAD	CALL BACKSPREAD
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR CALL SPREAD Vs CALL BACKSPREAD - Strategy Pros & Cons

	BEAR CALL SPREAD	CALL BACKSPREAD
Similar Strategies	Bear Put Spread, Bull Call Spread	-
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.
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.	• Unlimited profit potential.