BEAR CALL SPREAD	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

BEAR CALL SPREAD Vs STRAP - Details

	BEAR CALL SPREAD	STRAP
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Strike Price of Short Call + Net Premium Received	Strike Price of Calls/Puts + (Net Premium Paid/2)

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

	BEAR CALL SPREAD	STRAP
Market View	Bearish	Neutral
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 used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Strike Price of Short Call + Net Premium Received	Strike Price of Calls/Puts + (Net Premium Paid/2)

BEAR CALL SPREAD Vs STRAP - Risk & Reward

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

BEAR CALL SPREAD Vs STRAP - Strategy Pros & Cons

	BEAR CALL SPREAD	STRAP
Similar Strategies	Bear Put Spread, Bull Call Spread	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• To generate profit, there should be significant change in share price. • Expensive strategy.
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 loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.