THE COLLAR	BULL 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..	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..

THE COLLAR Vs BULL PUT SPREAD - Details

	THE COLLAR	BULL PUT SPREAD
Market View	Bullish	Bullish
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 short put - net premium paid

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

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

THE COLLAR Vs BULL PUT SPREAD - Risk & Reward

	THE COLLAR	BULL PUT SPREAD
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received	Max Profit = Net Premium Received
Maximum Loss Scenario	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

THE COLLAR Vs BULL PUT SPREAD - Strategy Pros & Cons

	THE COLLAR	BULL PUT SPREAD
Similar Strategies	Call Spread, Bull Put Spread	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• Limited profit potential. • In loss situations, time decay may go against you.
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.	• 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.