Compare Strategies
BEAR CALL SPREAD | BEAR CALL SPREAD | |
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About Strategy |
Bear Call Spread Option StrategyBear 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 |
Bear Call Spread Option StrategyBear 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 .. |
BEAR CALL SPREAD Vs BEAR CALL SPREAD - Details
BEAR CALL SPREAD | BEAR CALL SPREAD | |
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Market View | Bearish | Bearish |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 2 | 2 |
Strategy Level | Beginners | Beginners |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Strike Price of Short Call + Net Premium Received | Strike Price of Short Call + Net Premium Received |
BEAR CALL SPREAD Vs BEAR CALL SPREAD - When & How to use ?
BEAR CALL SPREAD | BEAR CALL SPREAD | |
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Market View | Bearish | Bearish |
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 you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations. |
Action | Buy OTM Call Option, Sell ITM Call Option | Buy OTM Call Option, Sell ITM Call Option |
Breakeven Point | Strike Price of Short Call + Net Premium Received | Strike Price of Short Call + Net Premium Received |
BEAR CALL SPREAD Vs BEAR CALL SPREAD - Risk & Reward
BEAR CALL SPREAD | BEAR CALL SPREAD | |
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Maximum Profit Scenario | Max Profit = Net Premium Received - Commissions Paid | Max Profit = Net Premium Received - Commissions Paid |
Maximum Loss Scenario | Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received | Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received |
Risk | Limited | Limited |
Reward | Limited | Limited |
BEAR CALL SPREAD Vs BEAR CALL SPREAD - Strategy Pros & Cons
BEAR CALL SPREAD | BEAR CALL SPREAD | |
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Similar Strategies | Bear Put Spread, Bull Call Spread | Bear Put Spread, Bull Call Spread |
Disadvantage | • Limited amount of profit. • Margin requirement, more commission charges. | • 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. | • 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. |