SHORT CALL	STRIP
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy Read more..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

SHORT CALL Vs STRIP - Details

	SHORT CALL	STRIP
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

SHORT CALL Vs STRIP - When & How to use ?

	SHORT CALL	STRIP
Market View	Bearish	Neutral
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Sell or Write Call Option	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Strike Price of Short Call + Premium Received	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

SHORT CALL Vs STRIP - Risk & Reward

	SHORT CALL	STRIP
Maximum Profit Scenario	Max Profit = Premium Received	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Net Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs STRIP - Strategy Pros & Cons

	SHORT CALL	STRIP
Similar Strategies	Covered Put, Covered Calls	Strap, Short Put Ladder
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.