BULL PUT SPREAD	THE COLLAR
About Strategy	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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

BULL PUT SPREAD Vs THE COLLAR - Details

	BULL PUT SPREAD	THE COLLAR
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of short put - net premium paid	Price of Features - Call Premium + Put Premium

BULL PUT SPREAD Vs THE COLLAR - When & How to use ?

	BULL PUT SPREAD	THE COLLAR
Market View	Bullish	Bullish
When to use?	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.	It should be used only in case where trader is certain about the bearish market view.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point	Strike price of short put - net premium paid	Price of Features - Call Premium + Put Premium

BULL PUT SPREAD Vs THE COLLAR - Risk & Reward

	BULL PUT SPREAD	THE COLLAR
Maximum Profit Scenario	Max Profit = Net Premium Received	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

BULL PUT SPREAD Vs THE COLLAR - Strategy Pros & Cons

	BULL PUT SPREAD	THE COLLAR
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Call Spread, Bull Put Spread
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages	• 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.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.