CALL BACKSPREAD	BEAR CALL SPREAD
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r 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..

CALL BACKSPREAD Vs BEAR CALL SPREAD - Details

	CALL BACKSPREAD	BEAR CALL SPREAD
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike Price of Short Call + Net Premium Received

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

	CALL BACKSPREAD	BEAR CALL SPREAD
Market View	Bullish	Bearish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	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 1 ITM Call, BUY 2 OTM Call	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Strike Price of Short Call + Net Premium Received

CALL BACKSPREAD Vs BEAR CALL SPREAD - Risk & Reward

	CALL BACKSPREAD	BEAR CALL SPREAD
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs BEAR CALL SPREAD - Strategy Pros & Cons

	CALL BACKSPREAD	BEAR CALL SPREAD
Similar Strategies	-	Bear Put Spread, Bull Call Spread
Disadvantage		• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Unlimited profit potential.	• 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.