I have attached two Options order charts.

Max profit & loss are the same. But one (put) costs less than the other (call).

Is there any real difference between these two orders? Is there any real difference between placing two calls vs two puts?

I am new to options trading.

Charts ⬇️
A Two Call Option Chart Two Call Option Chart

A Two Put Option Chart
Two Put Option Chart

1 Answer 1


What you are comparing is a pair of bearish vertical spreads.

The first step is to understand the Synthetic Triangle where:

s + p - c = 0 (stock + put - call) ... where (+) means long and (-) means short.

So for your question, that leads to two equations:

(1) +S +16500p -16500c = 0

(2) +S +16900p -16900c = 0

If you factor the equations you get:

(3) +16500c = +S +16500p

(4) +16900c = +S +16900p

Your bear call spread is (short a lower-strike call) + (long a higher-strike call) which is:

(5) -16500c + 16900c

Substitute (3) and (4) in (5) and you get:

  • (+S +16500p) + (+S +16900p) or

  • (-S -16500p +S +16900p) which simplifies to:

  • (-16500p + 16900p)

...which is a bear put spread (short a lower-strike put) + (buy a higher-strike put)

So the answer is that theoretically, there is no difference between the two spreads. They are synthetically equivalent. In reality, there can be:

  • One spread may have larger bid/ask spreads, making it the poorer choice.

  • Of greater importance is that if you are correct in your directional assessment, you want to select the spread that avoids closing costs. In this case, if you buy the bear put spread and the underlying drops to or below 16500, you'll have closing costs. If instead you had done the bearish call spreads, at or below 16500, both calls would expire worthless and you'd have no closing costs.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.