BULL PUT SPREAD	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

BULL PUT SPREAD Vs STRAP - Details

	BULL PUT SPREAD	STRAP
Market View	Bullish	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	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Strike price of short put - net premium paid	Strike Price of Calls/Puts + (Net Premium Paid/2)

BULL PUT SPREAD Vs STRAP - When & How to use ?

	BULL PUT SPREAD	STRAP
Market View	Bullish	Neutral
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.	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Strike price of short put - net premium paid	Strike Price of Calls/Puts + (Net Premium Paid/2)

BULL PUT SPREAD Vs STRAP - Risk & Reward

	BULL PUT SPREAD	STRAP
Maximum Profit Scenario	Max Profit = Net Premium Received	UNLIMITED
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BULL PUT SPREAD Vs STRAP - Strategy Pros & Cons

	BULL PUT SPREAD	STRAP
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• To generate profit, there should be significant change in share price. • Expensive strategy.
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.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.