COVERED PUT	BULL PUT SPREAD
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the Read more..	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem .. Read more..

COVERED PUT Vs BULL PUT SPREAD - Details

	COVERED PUT	BULL PUT SPREAD
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option) + Underlying	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Futures Price + Premium Received	Strike price of short put - net premium paid

COVERED PUT Vs BULL PUT SPREAD - When & How to use ?

	COVERED PUT	BULL PUT SPREAD
Market View	Bearish	Bullish
When to use?	The Covered Put works well when the market is moderately Bearish.	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.
Action	Sell Underlying Sell OTM Put Option	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Futures Price + Premium Received	Strike price of short put - net premium paid

COVERED PUT Vs BULL PUT SPREAD - Risk & Reward

	COVERED PUT	BULL PUT SPREAD
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	Max Profit = Net Premium Received
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED PUT Vs BULL PUT SPREAD - Strategy Pros & Cons

	COVERED PUT	BULL PUT SPREAD
Similar Strategies	Bear Put Spread, Bear Call Spread	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Limited profit potential. • In loss situations, time decay may go against you.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.