BEAR CALL SPREAD	THE COLLAR
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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

BEAR CALL SPREAD Vs THE COLLAR - Details

	BEAR CALL SPREAD	THE COLLAR
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Price of Features - Call Premium + Put Premium

BEAR CALL SPREAD Vs THE COLLAR - When & How to use ?

	BEAR CALL SPREAD	THE COLLAR
Market View	Bearish	Bullish
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.	It should be used only in case where trader is certain about the bearish market view.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point	Strike Price of Short Call + Net Premium Received	Price of Features - Call Premium + Put Premium

BEAR CALL SPREAD Vs THE COLLAR - Risk & Reward

	BEAR CALL SPREAD	THE COLLAR
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

BEAR CALL SPREAD Vs THE COLLAR - Strategy Pros & Cons

	BEAR CALL SPREAD	THE COLLAR
Similar Strategies	Bear Put Spread, Bull Call Spread	Call Spread, Bull Put Spread
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
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.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.