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 Bear 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 Bear 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 Bear Put Spread comparison:
| Comparison Aspect | Short Call | Bear 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 | Bear Put Spread is a type of vertical spread wherein buys a put option hoping to make a profit due to the market decline, and at the same time writes another put option with...more |
| Investor Obligation | The trader has the obligation to buy the stock at the predetermined price at the time of expiration. | If the prices fall as expected, the trader can make profits and limit his losses, but if the prices fall far more than expected then the trader won’t be able to make any profit. |
| Market Position | Bearish | Moderately Bearish |
| Strategy Level Suitable for | Experts | Intermediates |
| Options Traded | Call | Put |
| Number of Positions | 1 | 2 |
| Action Needed | Sell Call Option | Buy ITM Put, Sell OTM Put |
| Risk for You | Unlimited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike Price PLUS Premium | Strike Price of Long Put MINUS Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Let Put Options Expire Worthlessly |
| Investor Expectation | Prices of Assets Go Down Sharply | Market Prices to go Down |
| Strategy Summary | Risky | Limit Your Losses |
| Advantages | Profits in Bearish Market | Limited Risk, Capped Losses |
| Disadvantages | Limited Profit, Unlimited Risk | Limited Profit |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | Naked Call, Uncovered Call | NA |
| More Comparisons | Short Call Vs Short Put | Bear Put Spread Vs Short Put |
| Short Call Vs Long Combo | Bear Put Spread Vs Long Combo | |
| Short Call Vs Synthetic Call | Bear Put Spread Vs Synthetic Call | |
| Short Call Vs Long Put | Bear Put Spread Vs Long Put | |
| Short Call Vs Long Call | Bear Put Spread Vs Long Call | |
| Short Call Vs Covered Call | Bear Put Spread Vs Covered Call | |
| Short Call Vs Covered Put | Bear Put Spread Vs Covered Put | |
| Short Call Vs Protective Call | Bear Put Spread Vs Protective Call | |
| Short Call Vs Short Box | Bear Put Spread Vs Short Box | |
| Short Call Vs Long Call Condor | Bear Put Spread Vs Long Call Condor | |
| Short Call Vs Short Call Condor | Bear Put Spread Vs Short Call Condor | |
| Short Call Vs Box Spread | Bear Put Spread Vs Box Spread | |
| Short Call Vs Short Strangle | Bear Put Spread Vs Short Strangle | |
| Short Call Vs Long Strangle | Bear Put Spread Vs Long Strangle | |
| Short Call Vs Collar Strategy | Bear Put Spread Vs Collar Strategy | |
| Short Call Vs Long Straddle | Bear Put Spread Vs Long Straddle | |
| Short Call Vs Short Straddle | Bear Put Spread Vs Short Straddle | |
| Short Call Vs Long Call Butterfly | Bear Put Spread Vs Long Call Butterfly | |
| Short Call Vs Short Call Butterfly | Bear Put Spread Vs Short Call Butterfly | |
| Short Call Vs Bear Call Spread | Bear Put Spread Vs Bear Call Spread | |
| Short Call Vs Bear Put Spread | Bear Put Spread Vs Short Call | |
| Short Call Vs Bull Call Spread | Bear Put Spread Vs Bull Call Spread | |
| Short Call Vs Bull Put Spread | Bear Put Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Short Call Vs Bear 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 looking to make some money from a market decline and can take some basic risk – then Bear Put Spread options strategy makes sense to you.
This needs to be known that 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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