BEAR CALL SPREAD	LONG STRANGLE
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 Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the .. Read more..

BEAR CALL SPREAD Vs LONG STRANGLE - Details

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

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

	BEAR CALL SPREAD	LONG STRANGLE
Market View	Bearish	Neutral
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.	This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy OTM Call Option, Buy OTM Put Option
Breakeven Point	Strike Price of Short Call + Net Premium Received	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

BEAR CALL SPREAD Vs LONG STRANGLE - Risk & Reward

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

BEAR CALL SPREAD Vs LONG STRANGLE - Strategy Pros & Cons

	BEAR CALL SPREAD	LONG STRANGLE
Similar Strategies	Bear Put Spread, Bull Call Spread	Long Straddle, Short Strangle
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
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.	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .