BEAR CALL SPREAD	PROTECTIVE CALL
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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

BEAR CALL SPREAD Vs PROTECTIVE CALL - Details

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

BEAR CALL SPREAD Vs PROTECTIVE CALL - When & How to use ?

	BEAR CALL SPREAD	PROTECTIVE CALL
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.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy 1 ATM Call
Breakeven Point	Strike Price of Short Call + Net Premium Received	Sale Price of Underlying + Premium Paid

BEAR CALL SPREAD Vs PROTECTIVE CALL - Risk & Reward

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

BEAR CALL SPREAD Vs PROTECTIVE CALL - Strategy Pros & Cons

	BEAR CALL SPREAD	PROTECTIVE CALL
Similar Strategies	Bear Put Spread, Bull Call Spread	Put Backspread, Long Put
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Profitable when market moves as expected. • Not good for beginners.
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.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.