COVERED PUT	BULL CALL 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 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..

COVERED PUT Vs BULL CALL SPREAD - Details

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

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

	COVERED PUT	BULL CALL SPREAD
Market View	Bearish	Bullish
When to use?	The Covered Put works well when the market is moderately Bearish.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Sell Underlying Sell OTM Put Option	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Futures Price + Premium Received	Strike price of purchased call + net premium paid

COVERED PUT Vs BULL CALL SPREAD - Risk & Reward

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

COVERED PUT Vs BULL CALL SPREAD - Strategy Pros & Cons

	COVERED PUT	BULL CALL SPREAD
Similar Strategies	Bear Put Spread, Bear Call Spread	Collar
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• 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	• 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.	• 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.