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 Call Vs Bull Put 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 Call Vs Bull Put 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 Call Vs Bull Put Spread comparison:
| Comparison Aspect | Short Call | Bull Put Spread |
| View |  |  |
| Strategy Introduction | Short Call is used when the trader expects that the price of the underlying asset will go down sharply, he shorts a call. If the price of the asset goes down, the strategy generates profit. However, if the price...more | Bull Put Spread comes into play when the trader is expecting the market is going up gradually, but moderately. So, this is also suitable for a moderately bullish forecast, just like the bull call option...more |
| Investor Obligation | The trader has the obligation to buy the stock at the predetermined price at the time of expiration. | Bull put spread is more ideal if the there is very high volatility in the market, time to expiration date is more and the market has declined considerably. |
| Market Position | Bearish | Moderately Bullish |
| Strategy Level Suitable for | Experts | Intermediates |
| Options Traded | Call | Put |
| Number of Positions | 1 | 2 |
| Action Needed | Sell Call Option | Buy OTM Put, Sell ITM Put |
| Risk for You | Unlimited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike Price PLUS Premium | Strike price of short put MINUS net premium paid |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets Go Down Sharply | Market Prices to Go Up |
| Strategy Summary | Risky | Limited Risk, Limited Gains |
| Advantages | Profits in Bearish Market | Limited Risk |
| Disadvantages | Limited Profit, Unlimited Risk | Limited Profit |
| Market Scenarios - Profit | 1 | 3 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | Naked Call, Uncovered Call | NA |
| More Comparisons | Short Call Vs Short Put | Bull Put Spread Vs Short Put |
| Short Call Vs Long Combo | Bull Put Spread Vs Long Combo | |
| Short Call Vs Synthetic Call | Bull Put Spread Vs Synthetic Call | |
| Short Call Vs Long Put | Bull Put Spread Vs Long Put | |
| Short Call Vs Long Call | Bull Put Spread Vs Long Call | |
| Short Call Vs Covered Call | Bull Put Spread Vs Covered Call | |
| Short Call Vs Covered Put | Bull Put Spread Vs Covered Put | |
| Short Call Vs Protective Call | Bull Put Spread Vs Protective Call | |
| Short Call Vs Short Box | Bull Put Spread Vs Short Box | |
| Short Call Vs Long Call Condor | Bull Put Spread Vs Long Call Condor | |
| Short Call Vs Short Call Condor | Bull Put Spread Vs Short Call Condor | |
| Short Call Vs Box Spread | Bull Put Spread Vs Box Spread | |
| Short Call Vs Short Strangle | Bull Put Spread Vs Short Strangle | |
| Short Call Vs Long Strangle | Bull Put Spread Vs Long Strangle | |
| Short Call Vs Collar Strategy | Bull Put Spread Vs Collar Strategy | |
| Short Call Vs Long Straddle | Bull Put Spread Vs Long Straddle | |
| Short Call Vs Short Straddle | Bull Put Spread Vs Short Straddle | |
| Short Call Vs Long Call Butterfly | Bull Put Spread Vs Long Call Butterfly | |
| Short Call Vs Short Call Butterfly | Bull Put Spread Vs Short Call Butterfly | |
| Short Call Vs Bear Call Spread | Bull Put Spread Vs Bear Call Spread | |
| Short Call Vs Bear Put Spread | Bull Put Spread Vs Bear Put Spread | |
| Short Call Vs Bull Call Spread | Bull Put Spread Vs Bull Call Spread | |
| Short Call Vs Bull Put Spread | Bull Put Spread Vs Short Call |
Thus, with this, we wrap up our comparison on Short Call Vs Bull Put Spread option strategies.
As mentioned above, if you are looking to put minimal initial investment and have a high-risk appetite, then Short Call options strategy can work wonders for you.
At the same time, if you are in a moderately bullish forecast situation and want to take a limited risk, then Bull Put Spread is one of the options trading strategies you can look out for.
The profit you get using this strategy is also limited in scope.
Furthermore, as said above, it also depends on the market situation.
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