SHORT CALL	SHORT STRANGLE
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..	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..

SHORT CALL Vs SHORT STRANGLE - Details

	SHORT CALL	SHORT STRANGLE
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Strike Price of Short Call + Premium Received	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

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

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

SHORT CALL Vs SHORT STRANGLE - Risk & Reward

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

SHORT CALL Vs SHORT STRANGLE - Strategy Pros & Cons

	SHORT CALL	SHORT STRANGLE
Similar Strategies	Covered Put, Covered Calls	Short Straddle, Long Strangle
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• 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.