BEAR PUT SPREAD	SHORT CALL
About Strategy	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM Read more..	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 .. Read more..

BEAR PUT SPREAD Vs SHORT CALL - Details

	BEAR PUT SPREAD	SHORT CALL
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price of Long Put - Net Premium	Strike Price of Short Call + Premium Received

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

	BEAR PUT SPREAD	SHORT CALL
Market View	Bearish	Bearish
When to use?	The bear call spread options 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.	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	Buy ITM Put Option, Sell OTM Put Option	Sell or Write Call Option
Breakeven Point	Strike Price of Long Put - Net Premium	Strike Price of Short Call + Premium Received

BEAR PUT SPREAD Vs SHORT CALL - Risk & Reward

	BEAR PUT SPREAD	SHORT CALL
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Max Profit = Premium Received
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BEAR PUT SPREAD Vs SHORT CALL - Strategy Pros & Cons

	BEAR PUT SPREAD	SHORT CALL
Similar Strategies	Bear Call Spread, Bull Call Spread	Covered Put, Covered Calls
Disadvantage	• Limited profit. • Early assignment risk.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.	• 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.