LONG PUT	BULL CALL SPREAD
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	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..

LONG PUT Vs BULL CALL SPREAD - Details

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

LONG PUT Vs BULL CALL SPREAD - When & How to use ?

	LONG PUT	BULL CALL SPREAD
Market View	Bearish	Bullish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Buy Put Option	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike price of purchased call + net premium paid

LONG PUT Vs BULL CALL SPREAD - Risk & Reward

	LONG PUT	BULL CALL SPREAD
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG PUT Vs BULL CALL SPREAD - Strategy Pros & Cons

	LONG PUT	BULL CALL SPREAD
Similar Strategies	Protective Call, Short Put	Collar
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• 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.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• 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.