BEAR CALL SPREAD	SHORT STRANGLE
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..	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

BEAR CALL SPREAD Vs SHORT STRANGLE - Details

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

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

	BEAR CALL SPREAD	SHORT STRANGLE
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 is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Buy OTM Call Option, Sell ITM Call Option	Sell OTM Call, Sell OTM Put
Breakeven Point	Strike Price of Short Call + Net Premium Received	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

BEAR CALL SPREAD Vs SHORT STRANGLE - Risk & Reward

	BEAR CALL SPREAD	SHORT STRANGLE
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BEAR CALL SPREAD Vs SHORT STRANGLE - Strategy Pros & Cons

	BEAR CALL SPREAD	SHORT STRANGLE
Similar Strategies	Bear Put Spread, Bull Call Spread	Short Straddle, Long Strangle
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.