Compare Strategies
BEAR CALL SPREAD | SHORT CALL CONDOR SPREAD | |
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About Strategy |
Bear Call Spread Option StrategyBear 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 |
Short Call Condor Spread Option StrategyShort Call Condor Spread is the opposite of Long Call Condor Spread i.e. sell 1 Deep ITM Call Option, buy 1 ITM Call Option, buy 1 OTM Call Option, sell 1 Deep OTM Call Option. Similar to Long Call Condor, the risk and rewards associated with this strategy are limited. Credit is received at the time of entering into this strategy. |
BEAR CALL SPREAD Vs SHORT CALL CONDOR SPREAD - Details
BEAR CALL SPREAD | SHORT CALL CONDOR SPREAD | |
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Market View | Bearish | Volatile |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 2 | 4 |
Strategy Level | Beginners | Advance |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Strike Price of Short Call + Net Premium Received | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium |
BEAR CALL SPREAD Vs SHORT CALL CONDOR SPREAD - When & How to use ?
BEAR CALL SPREAD | SHORT CALL CONDOR SPREAD | |
---|---|---|
Market View | Bearish | Volatile |
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 when an investor expect the price of the underlying stock to be very volatile. |
Action | Buy OTM Call Option, Sell ITM Call Option | Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option |
Breakeven Point | Strike Price of Short Call + Net Premium Received | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium |
BEAR CALL SPREAD Vs SHORT CALL CONDOR SPREAD - Risk & Reward
BEAR CALL SPREAD | SHORT CALL CONDOR SPREAD | |
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Maximum Profit Scenario | Max Profit = Net Premium Received - Commissions Paid | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid |
Maximum Loss Scenario | Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received | Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid |
Risk | Limited | Limited |
Reward | Limited | Limited |
BEAR CALL SPREAD Vs SHORT CALL CONDOR SPREAD - Strategy Pros & Cons
BEAR CALL SPREAD | SHORT CALL CONDOR SPREAD | |
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Similar Strategies | Bear Put Spread, Bull Call Spread | Short Strangle |
Disadvantage | • Limited amount of profit. • Margin requirement, more commission charges. | • Amount of profit is low in comparison with other strategies. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. |
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 allows you to profit from highly volatile underlying assets moving in any direction. • Earn profit with little or no investment. • Wider profit zone. |