When it comes to Options Trading, there are different complexities involved in terms of choosing a specific strategy that works the best for you.
At the same time, each strategy has its own set of advantages as well as limitations, thus making the concept of options trading even more challenging. Thus, in case you are looking to fit a particular strategy in your option trades, just check few areas before you make a choice.
In this detailed comparison of Bear Call Spread Vs Bear Put Spread options trading strategies, we will be looking at the below-mentioned aspects and more:
- Current Market Position
- Your Risk Appetite
- Your Trading Experience
- Profit Potential
- Intention and Expectation of a trader
- Break-even point of your trade
Apart from the Bear Call Spread Vs Bear Put Spread strategies, there are more than 25 comparisons of each of these strategies with other option strategies. With all these comparisons, you should be able to filter the ones that work the best for you.
Here is the detailed Bear Call Spread Vs Bear Put Spread comparison:
| Comparison Aspect | Bear Put Spread | Bear Call Spread |
| View |  |  |
| Strategy Introduction | Bear Put Spread is a type of vertical spread wherein buys a put option hoping to make a profit due to the market decline, and at the same time writes another put option with...more | The bear call spread consists of two calls, both with the same underlying asset and expiration date, but the strike price of the call options bought is less than the strike price of the same number of call options sold. Like most of the spread strategies, it is a limited-risk...more |
| Investor Obligation | If the prices fall as expected, the trader can make profits and limit his losses, but if the prices fall far more than expected then the trader won’t be able to make any profit. | As a thumb rule, the expiration date must be about 30-45 days away in order to be able to take advantage of the accelerating time decay. |
| Market Position | Moderately Bearish | Moderately Bearish |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Put | Call |
| Number of Positions | 2 | 2 |
| Action Needed | Buy ITM Put, Sell OTM Put | Buy OTM Call, Sell OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike Price of Long Put MINUS Net Premium | Strike Price of Short Call + Net Premium Received |
| Investor Intention | Let Put Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Market Prices to go Down | Market to go down gradually, but moderately |
| Strategy Summary | Limit Your Losses | Limited Risk Limited Profit |
| Advantages | Limited Risk, Capped Losses | Profit when Market is going down, Limited Risk |
| Disadvantages | Limited Profit | Limited Profit |
| Market Scenarios - Profit | 1 | 2 |
| Market Scenarios - Loss | 2 | 1 |
| Also called as | NA | NA |
| More Comparisons | Bear Put Spread Vs Short Put | Bear Call Spread Vs Short Put |
| Bear Put Spread Vs Long Combo | Bear Call Spread Vs Long Combo | |
| Bear Put Spread Vs Synthetic Call | Bear Call Spread Vs Synthetic Call | |
| Bear Put Spread Vs Long Put | Bear Call Spread Vs Long Put | |
| Bear Put Spread Vs Long Call | Bear Call Spread Vs Long Call | |
| Bear Put Spread Vs Covered Call | Bear Call Spread Vs Covered Call | |
| Bear Put Spread Vs Covered Put | Bear Call Spread Vs Covered Put | |
| Bear Put Spread Vs Protective Call | Bear Call Spread Vs Protective Call | |
| Bear Put Spread Vs Short Box | Bear Call Spread Vs Short Box | |
| Bear Put Spread Vs Long Call Condor | Bear Call Spread Vs Long Call Condor | |
| Bear Put Spread Vs Short Call Condor | Bear Call Spread Vs Short Call Condor | |
| Bear Put Spread Vs Box Spread | Bear Call Spread Vs Box Spread | |
| Bear Put Spread Vs Short Strangle | Bear Call Spread Vs Short Strangle | |
| Bear Put Spread Vs Long Strangle | Bear Call Spread Vs Long Strangle | |
| Bear Put Spread Vs Collar Strategy | Bear Call Spread Vs Collar Strategy | |
| Bear Put Spread Vs Long Straddle | Bear Call Spread Vs Long Straddle | |
| Bear Put Spread Vs Short Straddle | Bear Call Spread Vs Short Straddle | |
| Bear Put Spread Vs Long Call Butterfly | Bear Call Spread Vs Long Call Butterfly | |
| Bear Put Spread Vs Short Call Butterfly | Bear Call Spread Vs Short Call Butterfly | |
| Bear Put Spread Vs Bear Call Spread | Bear Call Spread Vs Short Call | |
| Bear Put Spread Vs Short Call | Bear Call Spread Vs Bear Put Spread | |
| Bear Put Spread Vs Bull Call Spread | Bear Call Spread Vs Bull Call Spread | |
| Bear Put Spread Vs Bull Put Spread | Bear Call Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Bear Call Spread Vs Bear Put Spread option strategies.
As the name suggests, if you are looking at a slightly bearish market position and are open for a little risk, then bear call spread is something you can try in your trades. Having said that, the profit you can expect is going to be on a relatively limited level while using this strategy.
At the same time, if you are looking to make some money from a market decline and can take some basic risk – then Bear Put Spread options strategy makes sense to you.
This needs to be known that the profit you get using both of these strategies is also limited in scope.
Furthermore, as told above, it also depends on the market situation.
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