SHORT PUT	BEAR CALL SPREAD
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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 PUT Vs BEAR CALL SPREAD - Details

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

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

	SHORT PUT	BEAR CALL SPREAD
Market View	Bullish	Bearish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	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 Put Option	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Strike Price - Premium	Strike Price of Short Call + Net Premium Received

SHORT PUT Vs BEAR CALL SPREAD - Risk & Reward

	SHORT PUT	BEAR CALL SPREAD
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT PUT Vs BEAR CALL SPREAD - Strategy Pros & Cons

	SHORT PUT	BEAR CALL SPREAD
Similar Strategies	Bull Put Spread, Short Starddle	Bear Put Spread, Bull Call Spread
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• 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.