COVERED PUT	BEAR CALL SPREAD
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, 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..

COVERED PUT Vs BEAR CALL SPREAD - Details

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

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

	COVERED PUT	BEAR CALL SPREAD
Market View	Bearish	Bearish
When to use?	The Covered Put works well when the market is moderately Bearish.	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 Underlying Sell OTM Put Option	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Futures Price + Premium Received	Strike Price of Short Call + Net Premium Received

COVERED PUT Vs BEAR CALL SPREAD - Risk & Reward

	COVERED PUT	BEAR CALL SPREAD
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED PUT Vs BEAR CALL SPREAD - Strategy Pros & Cons

	COVERED PUT	BEAR CALL SPREAD
Similar Strategies	Bear Put Spread, Bear Call Spread	Bear Put Spread, Bull Call Spread
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• 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.