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 Long Call 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 Long Call 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 Long Call Vs Bear Call Spread comparison:
| Comparison Aspect | Long Call | Bear Call Spread |
| View |  |  |
| Strategy Introduction | In Long Call Strategy, the trader enters into a contract to buy a call option when he is bullish towards the market. The trader anticipates that the price of the security will go up in the future. However, he does not want to take the risk of buying the security outright...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 | The trader has the right to buy a security at a future date at a predefined price. The term long itself means buying a security or buying an option. | 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 | Bullish | Moderately Bearish |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call | Call |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Call Option | Buy OTM Call, Sell OTM Call |
| Risk for You | Limited to Premium | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price PLUS Premium | Strike Price of Short Call + Net Premium Received |
| Investor Intention | Exercise Option if Profitable, Let it go otherwise | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets Go Up Sharply | Market to go down gradually, but moderately |
| Strategy Summary | Attractive | Limited Risk Limited Profit |
| Advantages | Unlimited Profits, Limited Loss, Low Investment | Profit when Market is going down, Limited Risk |
| Disadvantages | Premium may eat up the Profits | Limited Profit |
| Market Scenarios - Profit | 1 | 2 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Call Vs Long Put | Bear Call Spread Vs Short Put |
| Long Call Vs Long Combo | Bear Call Spread Vs Long Combo | |
| Long Call Vs Synthetic Call | Bear Call Spread Vs Synthetic Call | |
| Long Call Vs Short Call | Bear Call Spread Vs Long Put | |
| Long Call Vs Short Put | Bear Call Spread Vs Long Call | |
| Long Call Vs Covered Call | Bear Call Spread Vs Covered Call | |
| Long Call Vs Covered Put | Bear Call Spread Vs Covered Put | |
| Long Call Vs Protective Call | Bear Call Spread Vs Protective Call | |
| Long Call Vs Short Box | Bear Call Spread Vs Short Box | |
| Long Call Vs Long Call Condor | Bear Call Spread Vs Long Call Condor | |
| Long Call Vs Short Call Condor | Bear Call Spread Vs Short Call Condor | |
| Long Call Vs Box Spread | Bear Call Spread Vs Box Spread | |
| Long Call Vs Short Strangle | Bear Call Spread Vs Short Strangle | |
| Long Call Vs Long Strangle | Bear Call Spread Vs Long Strangle | |
| Long Call Vs Collar Strategy | Bear Call Spread Vs Collar Strategy | |
| Long Call Vs Long Straddle | Bear Call Spread Vs Long Straddle | |
| Long Call Vs Short Straddle | Bear Call Spread Vs Short Straddle | |
| Long Call Vs Long Call Butterfly | Bear Call Spread Vs Long Call Butterfly | |
| Long Call Vs Short Call Butterfly | Bear Call Spread Vs Short Call Butterfly | |
| Long Call Vs Bear Call Spread | Bear Call Spread Vs Short Call | |
| Long Call Vs Bear Put Spread | Bear Call Spread Vs Bear Put Spread | |
| Long Call Vs Bull Call Spread | Bear Call Spread Vs Bull Call Spread | |
| Long Call Vs Bull Put Spread | Bear Call Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Call Vs Bear Call Spread option strategies.
As mentioned above, if you are in a Bullish market situation and want to make unlimited profits on your trades, then Long Call is one of the options trading strategies you can opt for. The risk involved in this strategy is more than limited and thus, the strategy can only work for higher profits if you have the experience to run similar strategies in the past.
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.
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