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 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 Call Vs Bull 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 Call Vs Bull Call Spread comparison:
| Comparison Aspect | Short Call | Bull Call 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 Call Spread is a vertical options strategy that involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices...more |
| Investor Obligation | The trader has the obligation to buy the stock at the predetermined price at the time of expiration. | It involves buying and selling two option contracts simultaneously, both with the same underlying security and expiry, but different strike prices. |
| Market Position | Bearish | Moderately Bullish |
| Strategy Level Suitable for | Experts | Beginners |
| Options Traded | Call | Call |
| Number of Positions | 1 | 2 |
| Action Needed | Sell Call Option | 1 ATM Call, 1 OTM Call |
| Risk for You | Unlimited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike Price PLUS Premium | Strike price of Purchased Call + Net premium paid |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets Go Down Sharply | Prices of the securities to Go Up moderately |
| Strategy Summary | Risky | Safe Play |
| Advantages | Profits in Bearish Market | Limited Risk |
| Disadvantages | Limited Profit, Unlimited Risk | Capped 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 Call Spread Vs Short Put |
| Short Call Vs Long Combo | Bull Call Spread Vs Long Combo | |
| Short Call Vs Synthetic Call | Bull Call Spread Vs Synthetic Call | |
| Short Call Vs Long Put | Bull Call Spread Vs Long Put | |
| Short Call Vs Long Call | Bull Call Spread Vs Long Call | |
| Short Call Vs Covered Call | Bull Call Spread Vs Covered Call | |
| Short Call Vs Covered Put | Bull Call Spread Vs Covered Put | |
| Short Call Vs Protective Call | Bull Call Spread Vs Protective Call | |
| Short Call Vs Short Box | Bull Call Spread Vs Short Box | |
| Short Call Vs Long Call Condor | Bull Call Spread Vs Long Call Condor | |
| Short Call Vs Short Call Condor | Bull Call Spread Vs Short Call Condor | |
| Short Call Vs Box Spread | Bull Call Spread Vs Box Spread | |
| Short Call Vs Short Strangle | Bull Call Spread Vs Short Strangle | |
| Short Call Vs Long Strangle | Bull Call Spread Vs Long Strangle | |
| Short Call Vs Collar Strategy | Bull Call Spread Vs Collar Strategy | |
| Short Call Vs Long Straddle | Bull Call Spread Vs Long Straddle | |
| Short Call Vs Short Straddle | Bull Call Spread Vs Short Straddle | |
| Short Call Vs Long Call Butterfly | Bull Call Spread Vs Long Call Butterfly | |
| Short Call Vs Short Call Butterfly | Bull Call Spread Vs Short Call Butterfly | |
| Short Call Vs Bear Call Spread | Bull Call Spread Vs Bear Call Spread | |
| Short Call Vs Bear Put Spread | Bull Call Spread Vs Bear Put Spread | |
| Short Call Vs Bull Call Spread | Bull Call Spread Vs Short Call | |
| Short Call Vs Bull Put Spread | Bull Call Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Short Call Vs Bull Call 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 market set-up and have a limited market risk appetite then you make consider using the Bull Call Spread strategy in your trades.
The profit you get using this strategy is also limited in scope.
Furthermore, as said above, it also depends on the market situation.
In case you are looking to trade in options segment or share market in general, let us assist you in that. Just fill the form below and we will take you to the steps ahead.
