SHORT CALL BUTTERFLY	BEAR CALL SPREAD
About Strategy	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 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 Vs BEAR CALL SPREAD - Details

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

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

	SHORT CALL BUTTERFLY	BEAR CALL SPREAD
Market View	Neutral	Bearish
When to use?	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.	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.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Strike Price of Short Call + Net Premium Received

SHORT CALL BUTTERFLY Vs BEAR CALL SPREAD - Risk & Reward

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

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

	SHORT CALL BUTTERFLY	BEAR CALL SPREAD
Similar Strategies	Long Straddle, Long Call Butterfly	Bear Put Spread, Bull Call Spread
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• 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.	• 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.