LONG PUT	BEAR PUT SPREAD
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< 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 PUT Vs BEAR PUT SPREAD - Details

	LONG PUT	BEAR PUT SPREAD
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price of Long Put - Net Premium

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

	LONG PUT	BEAR PUT SPREAD
Market View	Bearish	Bearish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	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 Put Option	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Strike Price of Long Put - Premium Paid	Strike Price of Long Put - Net Premium

LONG PUT Vs BEAR PUT SPREAD - Risk & Reward

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

LONG PUT Vs BEAR PUT SPREAD - Strategy Pros & Cons

	LONG PUT	BEAR PUT SPREAD
Similar Strategies	Protective Call, Short Put	Bear Call Spread, Bull Call Spread
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Limited profit. • Early assignment risk.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• 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.