BEAR PUT SPREAD	SHORT PUT BUTTERFLY
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..	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< .. Read more..

BEAR PUT SPREAD Vs SHORT PUT BUTTERFLY - Details

	BEAR PUT SPREAD	SHORT PUT BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

BEAR PUT SPREAD Vs SHORT PUT BUTTERFLY - When & How to use ?

	BEAR PUT SPREAD	SHORT PUT BUTTERFLY
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.	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.
Action	Buy ITM Put Option, Sell OTM Put Option	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

BEAR PUT SPREAD Vs SHORT PUT BUTTERFLY - Risk & Reward

	BEAR PUT SPREAD	SHORT PUT BUTTERFLY
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

BEAR PUT SPREAD Vs SHORT PUT BUTTERFLY - Strategy Pros & Cons

	BEAR PUT SPREAD	SHORT PUT BUTTERFLY
Similar Strategies	Bear Call Spread, Bull Call Spread	Short Condor, Reverse Iron Condor
Disadvantage	• Limited profit. • Early assignment risk.	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
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.	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.