BEAR CALL SPREAD	RATIO CALL WRITE
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..	Ratio Call Write Option Strategy  This strategy involves buying of an underlying asset in the cash/futures market and simultaneously selling ATM Calls double the number of long quantity. This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. Read more..

BEAR CALL SPREAD Vs RATIO CALL WRITE - Details

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

BEAR CALL SPREAD Vs RATIO CALL WRITE - When & How to use ?

	BEAR CALL SPREAD	RATIO CALL WRITE
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 by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Buy OTM Call Option, Sell ITM Call Option	Sell 2 ATM Calls
Breakeven Point	Strike Price of Short Call + Net Premium Received	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

BEAR CALL SPREAD Vs RATIO CALL WRITE - Risk & Reward

	BEAR CALL SPREAD	RATIO CALL WRITE
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Price of Underlying - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

BEAR CALL SPREAD Vs RATIO CALL WRITE - Strategy Pros & Cons

	BEAR CALL SPREAD	RATIO CALL WRITE
Similar Strategies	Bear Put Spread, Bull Call Spread	Variable Ratio Write
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Potential loss is higher than gain. • Limited 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.