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 Long Combo 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 Long Combo 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 Long Combo comparison:
| Comparison Aspect | Bear Call Spread | Long Combo |
| View |  |  |
| Strategy Introduction | 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 | The long combo is used when the investor is bullish towards the market and is certain that the prices of the shares will go up...more |
| Investor Obligation | 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. | The strategy expects low initial investment, however, the trader needs to pay the premium on the trades irrespective of the trade result. |
| Market Position | Moderately Bearish | Bullish |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call | Put, Call |
| Number of Positions | 2 | 2 |
| Action Needed | Buy OTM Call, Sell OTM Call | Sell One OTM Put, Buy One OTM Call |
| Risk for You | Limited | Unlimited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Strike Price of Short Call + Net Premium Received | Call Strike + Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Low Upfront Investments, High ROI |
| Investor Expectation | Market to go down gradually, but moderately | Price of Stocks Go Up |
| Strategy Summary | Limited Risk Limited Profit | Complex |
| Advantages | Profit when Market is going down, Limited Risk | Low Upfront Investment, Unlimited Profits |
| Disadvantages | Limited Profit | Unlimited Loss, High Premium |
| Market Scenarios - Profit | 2 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Bear Call Spread Vs Short Put | Long Combo Vs Short Put |
| Bear Call Spread Vs Long Combo | Long Combo Vs Long Put | |
| Bear Call Spread Vs Synthetic Call | Long Combo Vs Synthetic Call | |
| Bear Call Spread Vs Long Put | Long Combo Vs Short Call | |
| Bear Call Spread Vs Long Call | Long Combo Vs Long Call | |
| Bear Call Spread Vs Covered Call | Long Combo Vs Covered Call | |
| Bear Call Spread Vs Covered Put | Long Combo Vs Covered Put | |
| Bear Call Spread Vs Protective Call | Long Combo Vs Protective Call | |
| Bear Call Spread Vs Short Box | Long Combo Vs Short Box | |
| Bear Call Spread Vs Long Call Condor | Long Combo Vs Long Call Condor | |
| Bear Call Spread Vs Short Call Condor | Long Combo Vs Short Call Condor | |
| Bear Call Spread Vs Box Spread | Long Combo Vs Box Spread | |
| Bear Call Spread Vs Short Strangle | Long Combo Vs Short Strangle | |
| Bear Call Spread Vs Long Strangle | Long Combo Vs Long Strangle | |
| Bear Call Spread Vs Collar Strategy | Long Combo Vs Collar Strategy | |
| Bear Call Spread Vs Long Straddle | Long Combo Vs Long Straddle | |
| Bear Call Spread Vs Short Straddle | Long Combo Vs Short Straddle | |
| Bear Call Spread Vs Long Call Butterfly | Long Combo Vs Long Call Butterfly | |
| Bear Call Spread Vs Short Call Butterfly | Long Combo Vs Short Call Butterfly | |
| Bear Call Spread Vs Short Call | Long Combo Vs Bear Call Spread | |
| Bear Call Spread Vs Bear Put Spread | Long Combo Vs Bear Put Spread | |
| Bear Call Spread Vs Bull Call Spread | Long Combo Vs Bull Call Spread | |
| Bear Call Spread Vs Bull Put Spread | Long Combo Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Bear Call Spread Vs Long Combo 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.
This needs to be known that the profit you get using this strategy is also limited in scope.
If you are looking to put minimal initial investment and are open for unlimited profits as well as risks, then Long Combo options strategy can work wonders for you.
Furthermore, as told above, it also depends on the market situation.
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