SHORT CALL	LONG CALL
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..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

SHORT CALL Vs LONG CALL - Details

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

SHORT CALL Vs LONG CALL - When & How to use ?

	SHORT CALL	LONG CALL
Market View	Bearish	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
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 work when an investor expect the underlying instrument move in upward direction.
Action	Sell or Write Call Option	Buying Call option
Breakeven Point	Strike Price of Short Call + Premium Received	Strike price + Premium

SHORT CALL Vs LONG CALL - Risk & Reward

	SHORT CALL	LONG CALL
Maximum Profit Scenario	Max Profit = Premium Received	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs LONG CALL - Strategy Pros & Cons

	SHORT CALL	LONG CALL
Similar Strategies	Covered Put, Covered Calls	Protective Put
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
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.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.