SHORT STRANGLE	BULL 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..	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..

SHORT STRANGLE Vs BULL PUT SPREAD - Details

	SHORT STRANGLE	BULL PUT SPREAD
Market View	Neutral	Bullish
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 short put - net premium paid

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

	SHORT STRANGLE	BULL PUT SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	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	Sell OTM Call, Sell OTM Put	Buy OTM Put Option, Sell ITM 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 short put - net premium paid

SHORT STRANGLE Vs BULL PUT SPREAD - Risk & Reward

	SHORT STRANGLE	BULL PUT SPREAD
Maximum Profit Scenario	Maximum Profit = Net Premium Received	Max Profit = Net Premium Received
Maximum Loss Scenario	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT STRANGLE Vs BULL PUT SPREAD - Strategy Pros & Cons

	SHORT STRANGLE	BULL PUT SPREAD
Similar Strategies	Short Straddle, Long Strangle	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	• Limited profit potential. • In loss situations, time decay may go against you.
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.	• 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.