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 Short Strangle 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 Short Strangle 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 Short Strangle comparison:
| Comparison Aspect | Bull Call Spread | Short Strangle |
| View |  |  |
| Strategy Introduction | 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 | The short strangle options trading strategy is an excellent strategy to be deployed when the investor is expecting little to no volatility in the market...more |
| Investor Obligation | It involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices. | If the prediction does not come out true, the strategy can cause unlimited loss. |
| Market Position | Moderately Bullish | Neutral |
| Strategy Level Suitable for | Beginners | Experts |
| Options Traded | Call | Call |
| Number of Positions | 2 | 4 |
| Action Needed | 1 ATM Call, 1 OTM Call | 1 Short ITM Call, 1 Long ITM Call, 1 Long OTM Call, 1 Short OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Strike price of Purchased Call + Net premium paid | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Stock price remains between the 2 option Strike Prices and the options expire worthlessly |
| Investor Expectation | Prices of the securities to Go Up moderately | Little or No Market Volatility |
| Strategy Summary | Safe Play | Profits in Stable Market |
| Advantages | Limited Risk | Higher Range of Profit |
| Disadvantages | Capped Profit | Low Premium, Unlimited Risk |
| Market Scenarios - Profit | 3 | 1 |
| Market Scenarios - Loss | 2 | 1 |
| Also called as | NA | Credit Spread |
| More Comparisons | Bull Call Spread Vs Short Put | Short Strangle Vs Short Put |
| Bull Call Spread Vs Long Combo | Short Strangle Vs Long Combo | |
| Bull Call Spread Vs Synthetic Call | Short Strangle Vs Synthetic Call | |
| Bull Call Spread Vs Long Put | Short Strangle Vs Long Put | |
| Bull Call Spread Vs Long Call | Short Strangle Vs Long Call | |
| Bull Call Spread Vs Covered Call | Short Strangle Vs Covered Call | |
| Bull Call Spread Vs Covered Put | Short Strangle Vs Covered Put | |
| Bull Call Spread Vs Protective Call | Short Strangle Vs Protective Call | |
| Bull Call Spread Vs Short Box | Short Strangle Vs Short Box | |
| Bull Call Spread Vs Long Call Condor | Short Strangle Vs Long Call Condor | |
| Bull Call Spread Vs Short Call Condor | Short Strangle Vs Short Call Condor | |
| Bull Call Spread Vs Box Spread | Short Strangle Vs Box Spread | |
| Bull Call Spread Vs Short Strangle | Short Strangle Vs Short Call | |
| Bull Call Spread Vs Long Strangle | Short Strangle Vs Long Strangle | |
| Bull Call Spread Vs Collar Strategy | Short Strangle Vs Collar Strategy | |
| Bull Call Spread Vs Long Straddle | Short Strangle Vs Long Straddle | |
| Bull Call Spread Vs Short Straddle | Short Strangle Vs Short Straddle | |
| Bull Call Spread Vs Long Call Butterfly | Short Strangle Vs Long Call Butterfly | |
| Bull Call Spread Vs Short Call Butterfly | Short Strangle Vs Short Call Butterfly | |
| Bull Call Spread Vs Bear Call Spread | Short Strangle Vs Bear Call Spread | |
| Bull Call Spread Vs Bear Put Spread | Short Strangle Vs Bear Put Spread | |
| Bull Call Spread Vs Short Call | Short Strangle Vs Bull Call Spread | |
| Bull Call Spread Vs Bull Put Spread | Short Strangle Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Bull Call Spread Vs Short Strangle option strategies.
However, if you are in a neutral market situation and have a limited risk appetite, then Short Strangle is a potential option strategy for you. Generally, this strategy is suitable when you are sure that there is going to be low or no market volatility at all.
The strategy comes with a limited profit potential.
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.
