STRAP	BEAR CALL SPREAD
About Strategy	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin 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..

STRAP Vs BEAR CALL SPREAD - Details

	STRAP	BEAR CALL SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Beginners	Beginners
Reward Profile	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid	Limited
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price of Short Call + Net Premium Received

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

	STRAP	BEAR CALL SPREAD
Market View	Neutral	Bearish
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	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 2 ATM Call Option, Buy 1 ATM Put Option	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price of Short Call + Net Premium Received

STRAP Vs BEAR CALL SPREAD - Risk & Reward

	STRAP	BEAR CALL SPREAD
Maximum Profit Scenario	UNLIMITED	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Premium Paid	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

STRAP Vs BEAR CALL SPREAD - Strategy Pros & Cons

	STRAP	BEAR CALL SPREAD
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Bear Put Spread, Bull Call Spread
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• 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.