BEAR CALL SPREAD	LONG PUT
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..	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

BEAR CALL SPREAD Vs LONG PUT - Details

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

BEAR CALL SPREAD Vs LONG PUT - When & How to use ?

	BEAR CALL SPREAD	LONG PUT
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.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy Put Option
Breakeven Point	Strike Price of Short Call + Net Premium Received	Strike Price of Long Put - Premium Paid

BEAR CALL SPREAD Vs LONG PUT - Risk & Reward

	BEAR CALL SPREAD	LONG PUT
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR CALL SPREAD Vs LONG PUT - Strategy Pros & Cons

	BEAR CALL SPREAD	LONG PUT
Similar Strategies	Bear Put Spread, Bull Call Spread	Protective Call, Short Put
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
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.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.