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 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 Long 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 Long Call Vs Bear Put Spread comparison:
| Comparison Aspect | Long Call | Bear Put 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 | 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 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. | 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 | Bullish | Moderately Bearish |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call | Put |
| Number of Positions | 1 | 2 |
| Action Needed | Buy Call Option | Buy ITM Put, Sell OTM Put |
| Risk for You | Limited to Premium | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price PLUS Premium | Strike Price of Long Put MINUS Net Premium |
| Investor Intention | Exercise Option if Profitable, Let it go otherwise | Let Put Options Expire Worthlessly |
| Investor Expectation | Prices of Assets Go Up Sharply | Market Prices to go Down |
| Strategy Summary | Attractive | Limit Your Losses |
| Advantages | Unlimited Profits, Limited Loss, Low Investment | Limited Risk, Capped Losses |
| Disadvantages | Premium may eat up the Profits | Limited Profit |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 2 |
| Also called as | NA | NA |
| More Comparisons | Long Call Vs Long Put | Bear Put Spread Vs Short Put |
| Long Call Vs Long Combo | Bear Put Spread Vs Long Combo | |
| Long Call Vs Synthetic Call | Bear Put Spread Vs Synthetic Call | |
| Long Call Vs Short Call | Bear Put Spread Vs Long Put | |
| Long Call Vs Short Put | Bear Put Spread Vs Long Call | |
| Long Call Vs Covered Call | Bear Put Spread Vs Covered Call | |
| Long Call Vs Covered Put | Bear Put Spread Vs Covered Put | |
| Long Call Vs Protective Call | Bear Put Spread Vs Protective Call | |
| Long Call Vs Short Box | Bear Put Spread Vs Short Box | |
| Long Call Vs Long Call Condor | Bear Put Spread Vs Long Call Condor | |
| Long Call Vs Short Call Condor | Bear Put Spread Vs Short Call Condor | |
| Long Call Vs Box Spread | Bear Put Spread Vs Box Spread | |
| Long Call Vs Short Strangle | Bear Put Spread Vs Short Strangle | |
| Long Call Vs Long Strangle | Bear Put Spread Vs Long Strangle | |
| Long Call Vs Collar Strategy | Bear Put Spread Vs Collar Strategy | |
| Long Call Vs Long Straddle | Bear Put Spread Vs Long Straddle | |
| Long Call Vs Short Straddle | Bear Put Spread Vs Short Straddle | |
| Long Call Vs Long Call Butterfly | Bear Put Spread Vs Long Call Butterfly | |
| Long Call Vs Short Call Butterfly | Bear Put Spread Vs Short Call Butterfly | |
| Long Call Vs Bear Call Spread | Bear Put Spread Vs Bear Call Spread | |
| Long Call Vs Bear Put Spread | Bear Put Spread Vs Short Call | |
| Long Call Vs Bull Call Spread | Bear Put Spread Vs Bull Call Spread | |
| Long Call Vs Bull Put Spread | Bear Put Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Call Vs Bear Put 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.
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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