BEAR PUT SPREAD	SHORT STRANGLE
About Strategy	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 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 Vs SHORT STRANGLE - Details

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

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

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

BEAR PUT SPREAD Vs SHORT STRANGLE - Risk & Reward

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

BEAR PUT SPREAD Vs SHORT STRANGLE - Strategy Pros & Cons

	BEAR PUT SPREAD	SHORT STRANGLE
Similar Strategies	Bear Call Spread, Bull Call Spread	Short Straddle, Long Strangle
Disadvantage	• Limited profit. • Early assignment risk.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages	• 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.	• 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.