BEAR CALL SPREAD	COVERED PUT
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..	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

BEAR CALL SPREAD Vs COVERED PUT - Details

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

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

	BEAR CALL SPREAD	COVERED PUT
Market View	Bearish	Bearish
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.	The Covered Put works well when the market is moderately Bearish.
Action	Buy OTM Call Option, Sell ITM Call Option	Sell Underlying Sell OTM Put Option
Breakeven Point	Strike Price of Short Call + Net Premium Received	Futures Price + Premium Received

BEAR CALL SPREAD Vs COVERED PUT - Risk & Reward

	BEAR CALL SPREAD	COVERED PUT
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BEAR CALL SPREAD Vs COVERED PUT - Strategy Pros & Cons

	BEAR CALL SPREAD	COVERED PUT
Similar Strategies	Bear Put Spread, Bull Call Spread	Bear Put Spread, Bear Call Spread
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
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.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.