BEAR PUT SPREAD	COVERED 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..	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o .. Read more..

BEAR PUT SPREAD Vs COVERED CALL - Details

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

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

	BEAR PUT SPREAD	COVERED CALL
Market View	Bearish	Bullish
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.	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.
Action	Buy ITM Put Option, Sell OTM Put Option	(Buy Underlying) (Sell OTM Call Option)
Breakeven Point	Strike Price of Long Put - Net Premium	Purchase Price of Underlying- Premium Received

BEAR PUT SPREAD Vs COVERED CALL - Risk & Reward

	BEAR PUT SPREAD	COVERED CALL
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	[Call Strike Price - Stock Price Paid] + Premium Received
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Purchase Price of Underlying - Price of Underlying) + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BEAR PUT SPREAD Vs COVERED CALL - Strategy Pros & Cons

	BEAR PUT SPREAD	COVERED CALL
Similar Strategies	Bear Call Spread, Bull Call Spread	Bull Call Spread
Disadvantage	• Limited profit. • Early assignment risk.	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.
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.	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.