LONG GUTS	BEAR PUT SPREAD
About Strategy	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 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 Vs BEAR PUT SPREAD - Details

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

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

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

LONG GUTS Vs BEAR PUT SPREAD - Risk & Reward

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

LONG GUTS Vs BEAR PUT SPREAD - Strategy Pros & Cons

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