STRIP	BEAR PUT SPREAD
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the Read more..	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..

STRIP Vs BEAR PUT SPREAD - Details

	STRIP	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	3	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Strike Price of Long Put - Net Premium

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

	STRIP	BEAR PUT SPREAD
Market View	Neutral	Bearish
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	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.
Action	Buy 1 ATM Call, Buy 2 ATM Puts	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Strike Price of Long Put - Net Premium

STRIP Vs BEAR PUT SPREAD - Risk & Reward

	STRIP	BEAR PUT SPREAD
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Max Loss = Net Premium Paid.
Risk	Limited	Limited
Reward	Unlimited	Limited

STRIP Vs BEAR PUT SPREAD - Strategy Pros & Cons

	STRIP	BEAR PUT SPREAD
Similar Strategies	Strap, Short Put Ladder	Bear Call Spread, Bull Call Spread
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.	• Limited profit. • Early assignment risk.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	• 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.