SHORT CALL	LONG STRANGLE
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy Read more..	Long Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the .. Read more..

SHORT CALL Vs LONG STRANGLE - Details

	SHORT CALL	LONG STRANGLE
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

SHORT CALL Vs LONG STRANGLE - When & How to use ?

	SHORT CALL	LONG STRANGLE
Market View	Bearish	Neutral
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Sell or Write Call Option	Buy OTM Call Option, Buy OTM Put Option
Breakeven Point	Strike Price of Short Call + Premium Received	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

SHORT CALL Vs LONG STRANGLE - Risk & Reward

	SHORT CALL	LONG STRANGLE
Maximum Profit Scenario	Max Profit = Premium Received	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Max Loss = Net Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs LONG STRANGLE - Strategy Pros & Cons

	SHORT CALL	LONG STRANGLE
Similar Strategies	Covered Put, Covered Calls	Long Straddle, Short Strangle
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .