SHORT STRANGLE	BEAR CALL SPREAD
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if 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..

SHORT STRANGLE Vs BEAR CALL SPREAD - Details

	SHORT STRANGLE	BEAR CALL SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike Price of Short Call + Net Premium Received

SHORT STRANGLE Vs BEAR CALL SPREAD - When & How to use ?

	SHORT STRANGLE	BEAR CALL SPREAD
Market View	Neutral	Bearish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	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	Sell OTM Call, Sell OTM Put	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike Price of Short Call + Net Premium Received

SHORT STRANGLE Vs BEAR CALL SPREAD - Risk & Reward

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

SHORT STRANGLE Vs BEAR CALL SPREAD - Strategy Pros & Cons

	SHORT STRANGLE	BEAR CALL SPREAD
Similar Strategies	Short Straddle, Long Strangle	Bear Put Spread, Bull Call Spread
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	• 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.