SHORT GUTS	BEAR PUT SPREAD
About Strategy	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < 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 GUTS Vs BEAR PUT SPREAD - Details

	SHORT GUTS	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	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Strike Price of Long Put - Net Premium

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

	SHORT GUTS	BEAR PUT SPREAD
Market View	Neutral	Bearish
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.	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 1 ITM Call, Sell 1 ITM Put	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Strike Price of Long Put - Net Premium

SHORT GUTS Vs BEAR PUT SPREAD - Risk & Reward

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

SHORT GUTS Vs BEAR PUT SPREAD - Strategy Pros & Cons

	SHORT GUTS	BEAR PUT SPREAD
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Bear Call Spread, Bull Call Spread
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.	• Limited profit. • Early assignment risk.
Advantages	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.	• 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.