BULL CALL SPREAD	SHORT CALL
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. Read more..	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..

BULL CALL SPREAD Vs SHORT CALL - Details

	BULL CALL SPREAD	SHORT CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of purchased call + net premium paid	Strike Price of Short Call + Premium Received

BULL CALL SPREAD Vs SHORT CALL - When & How to use ?

	BULL CALL SPREAD	SHORT CALL
Market View	Bullish	Bearish
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.	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.
Action	Buy ITM Call Option, Sell OTM Call Option	Sell or Write Call Option
Breakeven Point	Strike price of purchased call + net premium paid	Strike Price of Short Call + Premium Received

BULL CALL SPREAD Vs SHORT CALL - Risk & Reward

	BULL CALL SPREAD	SHORT CALL
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	Max Profit = Premium Received
Maximum Loss Scenario	Net Premium Paid	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL CALL SPREAD Vs SHORT CALL - Strategy Pros & Cons

	BULL CALL SPREAD	SHORT CALL
Similar Strategies	Collar	Covered Put, Covered Calls
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	• 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.