BEAR PUT SPREAD	STRIP
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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

BEAR PUT SPREAD Vs STRIP - Details

	BEAR PUT SPREAD	STRIP
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	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

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

	BEAR PUT SPREAD	STRIP
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.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

BEAR PUT SPREAD Vs STRIP - Risk & Reward

	BEAR PUT SPREAD	STRIP
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs STRIP - Strategy Pros & Cons

	BEAR PUT SPREAD	STRIP
Similar Strategies	Bear Call Spread, Bull Call Spread	Strap, Short Put Ladder
Disadvantage	• Limited profit. • Early assignment risk.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
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.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.