BEAR PUT SPREAD	THE COLLAR
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..	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..

BEAR PUT SPREAD Vs THE COLLAR - Details

	BEAR PUT SPREAD	THE COLLAR
Market View	Bearish	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 Long Put - Net Premium	Price of Features - Call Premium + Put Premium

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

	BEAR PUT SPREAD	THE COLLAR
Market View	Bearish	Bullish
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.	It should be used only in case where trader is certain about the bearish market view.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point	Strike Price of Long Put - Net Premium	Price of Features - Call Premium + Put Premium

BEAR PUT SPREAD Vs THE COLLAR - Risk & Reward

	BEAR PUT SPREAD	THE COLLAR
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

BEAR PUT SPREAD Vs THE COLLAR - Strategy Pros & Cons

	BEAR PUT SPREAD	THE COLLAR
Similar Strategies	Bear Call Spread, Bull Call Spread	Call Spread, Bull Put Spread
Disadvantage	• Limited profit. • Early assignment risk.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
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.	• 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.