COVERED CALL	BEAR PUT SPREAD
About Strategy	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o Read more..	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

COVERED CALL Vs BEAR PUT SPREAD - Details

	COVERED CALL	BEAR PUT SPREAD
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike Price of Long Put - Net Premium

COVERED CALL Vs BEAR PUT SPREAD - When & How to use ?

	COVERED CALL	BEAR PUT SPREAD
Market View	Bullish	Bearish
When to use?	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.	The bear call spread options 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 Underlying) (Sell OTM Call Option)	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike Price of Long Put - Net Premium

COVERED CALL Vs BEAR PUT SPREAD - Risk & Reward

	COVERED CALL	BEAR PUT SPREAD
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + Premium Received	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.
Maximum Loss Scenario	Purchase Price of Underlying - Price of Underlying) + Premium Received	Max Loss = Net Premium Paid.
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED CALL Vs BEAR PUT SPREAD - Strategy Pros & Cons

	COVERED CALL	BEAR PUT SPREAD
Similar Strategies	Bull Call Spread	Bear Call Spread, Bull Call Spread
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• Limited profit. • Early assignment risk.
Advantages	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.