BEAR PUT SPREAD	LONG GUTS
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..	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..

BEAR PUT SPREAD Vs LONG GUTS - Details

	BEAR PUT SPREAD	LONG GUTS
Market View	Bearish	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 Long Put - Net Premium	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	BEAR PUT SPREAD	LONG GUTS
Market View	Bearish	Neutral
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 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 ITM Put Option, Sell OTM Put Option	Buy 1 ITM Call, Buy 1 ITM Put
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

BEAR PUT SPREAD Vs LONG GUTS - Risk & Reward

	BEAR PUT SPREAD	LONG GUTS
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	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 = Net Premium Paid.	Net Premium Paid + Strike Price of Long Put - Strike Price of Long Call + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs LONG GUTS - Strategy Pros & Cons

	BEAR PUT SPREAD	LONG GUTS
Similar Strategies	Bear Call Spread, Bull Call Spread	Short Put Ladder, Strip, Strap
Disadvantage	• Limited profit. • Early assignment risk.	• More commission involved than simply buying call or put option. • Expensive.
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.	• 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.