THE COLLAR	BEAR PUT SPREAD
About Strategy	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 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 Vs BEAR PUT SPREAD - Details

	THE COLLAR	BEAR PUT SPREAD
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike Price of Long Put - Net Premium

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

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

THE COLLAR Vs BEAR PUT SPREAD - Risk & Reward

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

THE COLLAR Vs BEAR PUT SPREAD - Strategy Pros & Cons

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