BEAR PUT SPREAD	MARRIED PUT
About Strategy	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..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

BEAR PUT SPREAD Vs MARRIED PUT - Details

	BEAR PUT SPREAD	MARRIED PUT
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Purchase Price of Underlying + Premium Paid

BEAR PUT SPREAD Vs MARRIED PUT - When & How to use ?

	BEAR PUT SPREAD	MARRIED PUT
Market View	Bearish	Bullish
When to use?	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.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Strike Price of Long Put - Net Premium	Purchase Price of Underlying + Premium Paid

BEAR PUT SPREAD Vs MARRIED PUT - Risk & Reward

	BEAR PUT SPREAD	MARRIED PUT
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs MARRIED PUT - Strategy Pros & Cons

	BEAR PUT SPREAD	MARRIED PUT
Similar Strategies	Bear Call Spread, Bull Call Spread	Long Call
Disadvantage	• Limited profit. • Early assignment risk.	Cost of the put options eats into profit margin.
Advantages	• 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.	Unlimited Profit and Limited Risk