BULL PUT SPREAD	STRIP
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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

BULL PUT SPREAD Vs STRIP - Details

	BULL PUT SPREAD	STRIP
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	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

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

	BULL PUT SPREAD	STRIP
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.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

BULL PUT SPREAD Vs STRIP - Risk & Reward

	BULL PUT SPREAD	STRIP
Maximum Profit Scenario	Max Profit = Net Premium Received	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BULL PUT SPREAD Vs STRIP - Strategy Pros & Cons

	BULL PUT SPREAD	STRIP
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Strap, Short Put Ladder
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
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.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.