SHORT PUT BUTTERFLY	BEAR PUT SPREAD
About Strategy	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< Read more..	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

SHORT PUT BUTTERFLY Vs BEAR PUT SPREAD - Details

	SHORT PUT BUTTERFLY	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Strike Price of Long Put - Net Premium

SHORT PUT BUTTERFLY Vs BEAR PUT SPREAD - When & How to use ?

	SHORT PUT BUTTERFLY	BEAR PUT SPREAD
Market View	Neutral	Bearish
When to use?	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Strike Price of Long Put - Net Premium

SHORT PUT BUTTERFLY Vs BEAR PUT SPREAD - Risk & Reward

	SHORT PUT BUTTERFLY	BEAR PUT SPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	Max Loss = Net Premium Paid.
Risk	Limited	Limited
Reward	Limited	Limited

SHORT PUT BUTTERFLY Vs BEAR PUT SPREAD - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	BEAR PUT SPREAD
Similar Strategies	Short Condor, Reverse Iron Condor	Bear Call Spread, Bull Call Spread
Disadvantage	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.	• Limited profit. • Early assignment risk.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.