STRIP	BEAR CALL SPREAD
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the 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..

STRIP Vs BEAR CALL SPREAD - Details

	STRIP	BEAR CALL SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Strike Price of Short Call + Net Premium Received

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

	STRIP	BEAR CALL SPREAD
Market View	Neutral	Bearish
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	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 1 ATM Call, Buy 2 ATM Puts	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Strike Price of Short Call + Net Premium Received

STRIP Vs BEAR CALL SPREAD - Risk & Reward

	STRIP	BEAR CALL SPREAD
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

STRIP Vs BEAR CALL SPREAD - Strategy Pros & Cons

	STRIP	BEAR CALL SPREAD
Similar Strategies	Strap, Short Put Ladder	Bear Put Spread, Bull Call Spread
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	• 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.