SHORT CALL	BEAR CALL SPREAD
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..	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 Vs BEAR CALL SPREAD - Details

	SHORT CALL	BEAR CALL SPREAD
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received	Strike Price of Short Call + Net Premium Received

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

	SHORT CALL	BEAR CALL SPREAD
Market View	Bearish	Bearish
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.	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	Sell or Write Call Option	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Strike Price of Short Call + Premium Received	Strike Price of Short Call + Net Premium Received

SHORT CALL Vs BEAR CALL SPREAD - Risk & Reward

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

SHORT CALL Vs BEAR CALL SPREAD - Strategy Pros & Cons

	SHORT CALL	BEAR CALL SPREAD
Similar Strategies	Covered Put, Covered Calls	Bear Put Spread, Bull Call Spread
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Limited amount of profit. • Margin requirement, more commission charges.
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.	• 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.