BEAR PUT SPREAD	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

BEAR PUT SPREAD Vs STRAP - Details

	BEAR PUT SPREAD	STRAP
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Strike Price of Long Put - Net Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

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

	BEAR PUT SPREAD	STRAP
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 used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Strike Price of Long Put - Net Premium	Strike Price of Calls/Puts + (Net Premium Paid/2)

BEAR PUT SPREAD Vs STRAP - Risk & Reward

	BEAR PUT SPREAD	STRAP
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	UNLIMITED
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs STRAP - Strategy Pros & Cons

	BEAR PUT SPREAD	STRAP
Similar Strategies	Bear Call Spread, Bull Call Spread	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Limited profit. • Early assignment risk.	• To generate profit, there should be significant change in share price. • Expensive strategy.
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.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.