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Comparision (BEAR CALL SPREAD VS BEAR CALL SPREAD)

 

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  BEAR CALL SPREAD BEAR CALL SPREAD
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

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 ..

BEAR CALL SPREAD Vs BEAR CALL SPREAD - Details

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

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

BEAR CALL SPREAD BEAR CALL SPREAD
Market View Bearish Bearish
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 you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action Buy OTM Call Option, Sell ITM Call Option Buy OTM Call Option, Sell ITM Call Option
Breakeven Point Strike Price of Short Call + Net Premium Received Strike Price of Short Call + Net Premium Received

BEAR CALL SPREAD Vs BEAR CALL SPREAD - Risk & Reward

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

BEAR CALL SPREAD Vs BEAR CALL SPREAD - Strategy Pros & Cons

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

BEAR CALL SPREAD

BEAR CALL SPREAD