LONG PUT	BULL PUT SPREAD
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	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 PUT Vs BULL PUT SPREAD - Details

	LONG PUT	BULL PUT SPREAD
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike price of short put - net premium paid

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

	LONG PUT	BULL PUT SPREAD
Market View	Bearish	Bullish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	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.
Action	Buy Put Option	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike price of short put - net premium paid

LONG PUT Vs BULL PUT SPREAD - Risk & Reward

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

LONG PUT Vs BULL PUT SPREAD - Strategy Pros & Cons

	LONG PUT	BULL PUT SPREAD
Similar Strategies	Protective Call, Short Put	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Limited profit potential. • In loss situations, time decay may go against you.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• 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.