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 Short Box 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 Short Box 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 Short Box Vs Bear Call Spread comparison:
| Comparison Aspect | Bear Call Spread | Short Box |
| 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 | Short Box involves selling a bull call spread along with a bear put spread, both at the same strike prices and expiration date, so that both the spreads balance each other out and create an arbitrage...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. | Recognize Put Call Parity distrubance as soon as possible and take positions to capture the movement. |
| Market Position | Moderately Bearish | Neutral |
| Strategy Level Suitable for | Intermediates | Experts |
| Options Traded | Call | 1 Short ITM Call, 1 Long OTM Call, 1 Short ITM Put, 1 Long OTM Put |
| Number of Positions | 2 | 4 |
| Action Needed | Buy OTM Call, Sell OTM Call | Sell bull call spread along with a Bear put spread |
| Risk for You | Limited | None |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike Price of Short Call + Net Premium Received | Not Required, Almost No Risk/Loss |
| Investor Intention | Let Options Expire Worthlessly | Take Positions at the right time and capture the profit. |
| Investor Expectation | Market to go down gradually, but moderately | Profits generated from the strategy will be enough to compensate for the commissions and brokerages paid |
| Strategy Summary | Limited Risk Limited Profit | Complicated |
| Advantages | Profit when Market is going down, Limited Risk | No Capital Needed, Zero Risk |
| Disadvantages | Limited Profit | Low Profit |
| Market Scenarios - Profit | 2 | 3 |
| Market Scenarios - Loss | 1 | 0 |
| Also called as | NA | NA |
| More Comparisons | Bear Call Spread Vs Short Put | Short Box Vs Short Put |
| Bear Call Spread Vs Long Combo | Short Box Vs Long Combo | |
| Bear Call Spread Vs Synthetic Call | Short Box Vs Synthetic Call | |
| Bear Call Spread Vs Long Put | Short Box Vs Long Put | |
| Bear Call Spread Vs Long Call | Short Box Vs Long Call | |
| Bear Call Spread Vs Covered Call | Short Box Vs Covered Call | |
| Bear Call Spread Vs Covered Put | Short Box Vs Covered Put | |
| Bear Call Spread Vs Protective Call | Short Box Vs Protective Call | |
| Bear Call Spread Vs Short Box | Short Box Vs Short Call | |
| Bear Call Spread Vs Long Call Condor | Short Box Vs Long Call Condor | |
| Bear Call Spread Vs Short Call Condor | Short Box Vs Short Call Condor | |
| Bear Call Spread Vs Box Spread | Short Box Vs Box Spread | |
| Bear Call Spread Vs Short Strangle | Short Box Vs Short Strangle | |
| Bear Call Spread Vs Long Strangle | Short Box Vs Long Strangle | |
| Bear Call Spread Vs Collar Strategy | Short Box Vs Collar Strategy | |
| Bear Call Spread Vs Long Straddle | Short Box Vs Long Straddle | |
| Bear Call Spread Vs Short Straddle | Short Box Vs Short Straddle | |
| Bear Call Spread Vs Long Call Butterfly | Short Box Vs Long Call Butterfly | |
| Bear Call Spread Vs Short Call Butterfly | Short Box Vs Short Call Butterfly | |
| Bear Call Spread Vs Short Call | Short Box Vs Bear Call Spread | |
| Bear Call Spread Vs Bear Put Spread | Short Box Vs Bear Put Spread | |
| Bear Call Spread Vs Bull Call Spread | Short Box Vs Bull Call Spread | |
| Bear Call Spread Vs Bull Put Spread | Short Box Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Short Box 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.
Remember, the Short box strategy has no risk but provides a consistent (and limited) profits to your trades. To add to that, it is a relatively complex strategy too.
Furthermore, as said above, it also depends on the market situation.
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