LONG STRANGLE	BEAR CALL SPREAD
About Strategy	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..	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..

LONG STRANGLE Vs BEAR CALL SPREAD - Details

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

LONG STRANGLE Vs BEAR CALL SPREAD - When & How to use ?

	LONG STRANGLE	BEAR CALL SPREAD
Market View	Neutral	Bearish
When to use?	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.	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 OTM Call Option, Buy OTM Put Option	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Strike Price of Short Call + Net Premium Received

LONG STRANGLE Vs BEAR CALL SPREAD - Risk & Reward

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

LONG STRANGLE Vs BEAR CALL SPREAD - Strategy Pros & Cons

	LONG STRANGLE	BEAR CALL SPREAD
Similar Strategies	Long Straddle, Short Strangle	Bear Put Spread, Bull Call Spread
Disadvantage	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• 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 .	• 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.