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 Bull Call Spread Vs Bear Call 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 Bull Call Spread Vs Bear Call 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 Bull Call Spread Vs Bear Call Spread comparison:
| Comparison Aspect | Bear Call Spread | Bull Call Spread |
| 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 | Bull Call Spread is a vertical options strategy that involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices...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. | It involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices. |
| Market Position | Moderately Bearish | Moderately Bullish |
| Strategy Level Suitable for | Intermediates | Beginners |
| Options Traded | Call | Call |
| Number of Positions | 2 | 2 |
| Action Needed | Buy OTM Call, Sell OTM Call | 1 ATM Call, 1 OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike Price of Short Call + Net Premium Received | Strike price of Purchased Call + Net premium paid |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Market to go down gradually, but moderately | Prices of the securities to Go Up moderately |
| Strategy Summary | Limited Risk Limited Profit | Safe Play |
| Advantages | Profit when Market is going down, Limited Risk | Limited Risk |
| Disadvantages | Limited Profit | Capped Profit |
| Market Scenarios - Profit | 2 | 3 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | NA | NA |
| More Comparisons | Bear Call Spread Vs Short Put | Bull Call Spread Vs Short Put |
| Bear Call Spread Vs Long Combo | Bull Call Spread Vs Long Combo | |
| Bear Call Spread Vs Synthetic Call | Bull Call Spread Vs Synthetic Call | |
| Bear Call Spread Vs Long Put | Bull Call Spread Vs Long Put | |
| Bear Call Spread Vs Long Call | Bull Call Spread Vs Long Call | |
| Bear Call Spread Vs Covered Call | Bull Call Spread Vs Covered Call | |
| Bear Call Spread Vs Covered Put | Bull Call Spread Vs Covered Put | |
| Bear Call Spread Vs Protective Call | Bull Call Spread Vs Protective Call | |
| Bear Call Spread Vs Short Box | Bull Call Spread Vs Short Box | |
| Bear Call Spread Vs Long Call Condor | Bull Call Spread Vs Long Call Condor | |
| Bear Call Spread Vs Short Call Condor | Bull Call Spread Vs Short Call Condor | |
| Bear Call Spread Vs Box Spread | Bull Call Spread Vs Box Spread | |
| Bear Call Spread Vs Short Strangle | Bull Call Spread Vs Short Strangle | |
| Bear Call Spread Vs Long Strangle | Bull Call Spread Vs Long Strangle | |
| Bear Call Spread Vs Collar Strategy | Bull Call Spread Vs Collar Strategy | |
| Bear Call Spread Vs Long Straddle | Bull Call Spread Vs Long Straddle | |
| Bear Call Spread Vs Short Straddle | Bull Call Spread Vs Short Straddle | |
| Bear Call Spread Vs Long Call Butterfly | Bull Call Spread Vs Long Call Butterfly | |
| Bear Call Spread Vs Short Call Butterfly | Bull Call Spread Vs Short Call Butterfly | |
| Bear Call Spread Vs Short Call | Bull Call Spread Vs Bear Call Spread | |
| Bear Call Spread Vs Bear Put Spread | Bull Call Spread Vs Bear Put Spread | |
| Bear Call Spread Vs Bull Call Spread | Bull Call Spread Vs Short Call | |
| Bear Call Spread Vs Bull Put Spread | Bull Call Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Bull Call Spread Vs Bear Call 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.
If you are in a moderately bullish market set-up and have a limited market risk appetite then you make consider using the Bull Call Spread strategy in your trades.
To add to that, the profit you get using this strategy is also limited in scope.
Furthermore, as told above, it also depends on the market situation.
In case you are looking to trade in options segment or share market in general, let us assist you in that. Just fill the form below and we will take you to the steps ahead.
