THE COLLAR	BEAR CALL SPREAD
About Strategy	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op 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..

THE COLLAR Vs BEAR CALL SPREAD - Details

	THE COLLAR	BEAR CALL SPREAD
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike Price of Short Call + Net Premium Received

THE COLLAR Vs BEAR CALL SPREAD - When & How to use ?

	THE COLLAR	BEAR CALL SPREAD
Market View	Bullish	Bearish
When to use?	It should be used only in case where trader is certain about the bearish market view.	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	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike Price of Short Call + Net Premium Received

THE COLLAR Vs BEAR CALL SPREAD - Risk & Reward

	THE COLLAR	BEAR CALL SPREAD
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

THE COLLAR Vs BEAR CALL SPREAD - Strategy Pros & Cons

	THE COLLAR	BEAR CALL SPREAD
Similar Strategies	Call Spread, Bull Put Spread	Bear Put Spread, Bull Call Spread
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.	• 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.