Compare and Contrast: Bear Call vs. Bear Put

[@mdc2utube]

Good video as usual. Thank you for comparing these in rising or falling Volatility in the holding period? Would we expect difference to appear as we get closer to expiration. If we expect all else being equal for IV to diminish that would seem to favoring the negative Volatility design - the credit spread and vice versa. This is not meant to be an academic question since we need a volatility expectation and since both types of spreads need to get close to expiration to approach higher profits. You have also capably shown the value of butterflies (and BWB) as expiration approaches, so would you favor the vertical credit spread or the butterfly(s) as contacts get closer (assuming there is adequate liquidity at strikes since butterflies need substantially more contracts. Thanks for all the work you put into these video comparions.

[@OptionStrat]

MD - I am just not personally a directional trader, so pretty much everything I do is going to be a variation of a butterfly, or sometimes calendars as I just feel more comfortable in a "Delta neutral position" leading things decay around me.

[@cluggyahoo]

​@@OptionStratSteve, why would you prefer an butterfly over a condor ?

[@PotesSan]

Hi Steve, which is easier to defend when the movement is against?; As with other strategies that you have clearly explained how to adjust, could you please explain to us what the best defense is for these strategies. I always have difficulty with adjusting these strategies.

[@OptionStrat]

There are many different adjustment strategies depending on a bunch of variables such as how much time is left in the trade - is volatility higher or lower, etc, etc. I might suggest looking at the "Start to Finish" play list in this channel to see some real time adjustment suggestions on trades to get a little better sense of adjustments.

[@mustafasaleh5328]

Why not taking volume caution in consideration as they are low

[@OptionStrat]

I am not sure I understand the question. If you are referring to volatility being low right now - yes it is, but keep in mind that these are NOT suggested trades for people to make, they are simply designed to help people understand how different positions react in different market conditions.

[@braylen6624]

'Promo sm' 😑

[@SamuraiTRDZ321]

The huge difference is in the bear call spread costs a lot more because of collateral/ money tied up.

[@OptionStrat]

Buying power used is always a factor and that will vary greatly, depending on the type of account, you have such as a reg T account, IRA, or portfolio margin account, so this is something best addressed with your broker and your particular account/situation

[@axe2grind911a]

Not true. The collateral is the same. Credit spreads are: difference between strikes minus the amount received (and amount received is on hold). Debit spreads are the diff in strikes minus the initial debit, but the debit is taken against the account immediately. In either case, the amount of collateral against your pre-trade balance is exactly the same.