BULL PUT SPREAD	LONG GUTS
About Strategy	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..	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< .. Read more..

BULL PUT SPREAD Vs LONG GUTS - Details

	BULL PUT SPREAD	LONG GUTS
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	BULL PUT SPREAD	LONG GUTS
Market View	Bullish	Neutral
When to use?	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.	This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy 1 ITM Call, Buy 1 ITM Put
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

BULL PUT SPREAD Vs LONG GUTS - Risk & Reward

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

BULL PUT SPREAD Vs LONG GUTS - Strategy Pros & Cons

	BULL PUT SPREAD	LONG GUTS
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Short Put Ladder, Strip, Strap
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• More commission involved than simply buying call or put option. • Expensive.
Advantages	• 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.	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.