COVERED CALL	BEAR CALL 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 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..

COVERED CALL Vs BEAR CALL SPREAD - Details

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

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

	COVERED CALL	BEAR CALL 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.	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 Underlying) (Sell OTM Call Option)	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Purchase Price of Underlying- Premium Received	Strike Price of Short Call + Net Premium Received

COVERED CALL Vs BEAR CALL SPREAD - Risk & Reward

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

COVERED CALL Vs BEAR CALL SPREAD - Strategy Pros & Cons

	COVERED CALL	BEAR CALL SPREAD
Similar Strategies	Bull Call Spread	Bear Put Spread, Bull Call Spread
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• Limited amount of profit. • Margin requirement, more commission charges.
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.	• 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.