BULL PUT SPREAD	SHORT CALL
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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

BULL PUT SPREAD Vs SHORT CALL - Details

	BULL PUT SPREAD	SHORT CALL
Market View	Bullish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of short put - net premium paid	Strike Price of Short Call + Premium Received

BULL PUT SPREAD Vs SHORT CALL - When & How to use ?

	BULL PUT SPREAD	SHORT CALL
Market View	Bullish	Bearish
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 is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Buy OTM Put Option, Sell ITM Put Option	Sell or Write Call Option
Breakeven Point	Strike price of short put - net premium paid	Strike Price of Short Call + Premium Received

BULL PUT SPREAD Vs SHORT CALL - Risk & Reward

	BULL PUT SPREAD	SHORT CALL
Maximum Profit Scenario	Max Profit = Net Premium Received	Max Profit = Premium Received
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL PUT SPREAD Vs SHORT CALL - Strategy Pros & Cons

	BULL PUT SPREAD	SHORT CALL
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Covered Put, Covered Calls
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
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.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.