PROTECTIVE CALL	BEAR CALL SPREAD
About Strategy	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The Read more..	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. Read more..

PROTECTIVE CALL Vs BEAR CALL SPREAD - Details

	PROTECTIVE CALL	BEAR CALL SPREAD
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Short Call + Net Premium Received

PROTECTIVE CALL Vs BEAR CALL SPREAD - When & How to use ?

	PROTECTIVE CALL	BEAR CALL SPREAD
Market View	Bearish	Bearish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buy 1 ATM Call	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Short Call + Net Premium Received

PROTECTIVE CALL Vs BEAR CALL SPREAD - Risk & Reward

	PROTECTIVE CALL	BEAR CALL SPREAD
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs BEAR CALL SPREAD - Strategy Pros & Cons

	PROTECTIVE CALL	BEAR CALL SPREAD
Similar Strategies	Put Backspread, Long Put	Bear Put Spread, Bull Call Spread
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.