BULL PUT SPREAD	LONG STRANGLE
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 Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the .. Read more..

BULL PUT SPREAD Vs LONG STRANGLE - Details

	BULL PUT SPREAD	LONG STRANGLE
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	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

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

	BULL PUT SPREAD	LONG STRANGLE
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 used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy OTM Call Option, Buy OTM Put Option
Breakeven Point	Strike price of short put - net premium paid	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

BULL PUT SPREAD Vs LONG STRANGLE - Risk & Reward

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

BULL PUT SPREAD Vs LONG STRANGLE - Strategy Pros & Cons

	BULL PUT SPREAD	LONG STRANGLE
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Long Straddle, Short Strangle
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
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.	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .