Comparision (BEAR CALL SPREAD
VS LONG CALL CONDOR SPREAD)
Compare Strategies
BEAR CALL SPREAD
LONG CALL CONDOR SPREAD
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
This strategy is implemented when a trader is bearish on the volatility and expects the market to move sideways. Using Call Options of the same expiry date, he will buy one Deep ITM Call Option, sell 1 ITM Call Option, sell 1 OTM Call Option, buy 1 Deep OTM Call Option. The risk and reward both are limited due to offsetting of long and short positions. For t ..
BEAR CALL SPREAD Vs LONG CALL CONDOR SPREAD - Details
BEAR CALL SPREAD
LONG CALL CONDOR SPREAD
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 Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium
BEAR CALL SPREAD Vs LONG CALL CONDOR SPREAD - When & How to use ?
BEAR CALL SPREAD
LONG CALL CONDOR SPREAD
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 works well when you expect the price of the underlying asset to be range bound in the coming days.
Action
Buy OTM Call Option, Sell ITM Call Option
Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option
Breakeven Point
Strike Price of Short Call + Net Premium Received
Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium
BEAR CALL SPREAD Vs LONG CALL CONDOR SPREAD - Risk & Reward
BEAR CALL SPREAD
LONG CALL CONDOR SPREAD
Maximum Profit Scenario
Max Profit = Net Premium Received - Commissions Paid
Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid
Maximum Loss Scenario
Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Net Premium Paid
Risk
Limited
Limited
Reward
Limited
Limited
BEAR CALL SPREAD Vs LONG CALL CONDOR SPREAD - Strategy Pros & Cons
BEAR CALL SPREAD
LONG CALL CONDOR SPREAD
Similar Strategies
Bear Put Spread, Bull Call Spread
Long Put Butterfly, Short Call Condor, Short Strangle
Disadvantage
• Limited amount of profit. • Margin requirement, more commission charges.
• Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit.
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.
• Capable to generate profit even if there is low volatility in the market. • This strategy is associated with limited risk and limited profit. • Wider profit zone.