LONG PUT	BEAR CALL SPREAD
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	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 PUT Vs BEAR CALL SPREAD - Details

	LONG PUT	BEAR CALL SPREAD
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price of Short Call + Net Premium Received

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

	LONG PUT	BEAR CALL SPREAD
Market View	Bearish	Bearish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	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.
Action	Buy Put Option	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price of Short Call + Net Premium Received

LONG PUT Vs BEAR CALL SPREAD - Risk & Reward

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

LONG PUT Vs BEAR CALL SPREAD - Strategy Pros & Cons

	LONG PUT	BEAR CALL SPREAD
Similar Strategies	Protective Call, Short Put	Bear Put Spread, Bull Call Spread
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• 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.