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Comparision (SHORT CALL VS SHORT CALL)

 

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  SHORT CALL SHORT CALL
About Strategy

Short Call Option Strategy

A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders.
However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy

Short Call Option Strategy

A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders.
However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy ..

SHORT CALL Vs SHORT CALL - Details

SHORT CALL SHORT CALL
Market View Bearish Bearish
Type (CE/PE) CE (Call Option) CE (Call Option)
Number Of Positions 1 1
Strategy Level Advance Advance
Reward Profile Limited Limited
Risk Profile Unlimited Unlimited
Breakeven Point Strike Price of Short Call + Premium Received Strike Price of Short Call + Premium Received

SHORT CALL Vs SHORT CALL - When & How to use ?

SHORT CALL SHORT CALL
Market View Bearish Bearish
When to use? It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying. It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action Sell or Write Call Option Sell or Write Call Option
Breakeven Point Strike Price of Short Call + Premium Received Strike Price of Short Call + Premium Received

SHORT CALL Vs SHORT CALL - Risk & Reward

SHORT CALL SHORT CALL
Maximum Profit Scenario Max Profit = Premium Received Max Profit = Premium Received
Maximum Loss Scenario Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk Unlimited Unlimited
Reward Limited Limited

SHORT CALL Vs SHORT CALL - Strategy Pros & Cons

SHORT CALL SHORT CALL
Similar Strategies Covered Put, Covered Calls Covered Put, Covered Calls
Disadvantage • Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected. • Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages • With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount. • With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.

SHORT CALL

SHORT CALL