SHORT STRANGLE	BEAR PUT SPREAD
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if 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..

SHORT STRANGLE Vs BEAR PUT SPREAD - Details

	SHORT STRANGLE	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike Price of Long Put - Net Premium

SHORT STRANGLE Vs BEAR PUT SPREAD - When & How to use ?

	SHORT STRANGLE	BEAR PUT SPREAD
Market View	Neutral	Bearish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	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	Sell OTM Call, Sell OTM Put	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Strike Price of Long Put - Net Premium

SHORT STRANGLE Vs BEAR PUT SPREAD - Risk & Reward

	SHORT STRANGLE	BEAR PUT SPREAD
Maximum Profit Scenario	Maximum Profit = Net Premium Received	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.
Maximum Loss Scenario	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received	Max Loss = Net Premium Paid.
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT STRANGLE Vs BEAR PUT SPREAD - Strategy Pros & Cons

	SHORT STRANGLE	BEAR PUT SPREAD
Similar Strategies	Short Straddle, Long Strangle	Bear Call Spread, Bull Call Spread
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	• Limited profit. • Early assignment risk.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	• 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.